Group CFO & Executive Director Of Lloyds Banking Group Sold 87% Of Their Shares
We wouldn't blame Lloyds Banking Group plc (LON:LLOY) shareholders if they were a little worried about the fact that William Leon Chalmers, the Group CFO & Executive Director recently netted about UK£10m selling shares at an average price of UK£1.12. Probably the most concerning element of the whole transaction is that the disposal amounted to 87% of their entire holding.
Lloyds Banking Group Insider Transactions Over The Last Year
In fact, the recent sale by William Leon Chalmers was the biggest sale of Lloyds Banking Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of UK£1.10. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid UK£318k for 331.83k shares. On the other hand they divested 11.02m shares, for UK£12m. Over the last year we saw more insider selling of Lloyds Banking Group shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Lloyds Banking Group
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Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.06% of Lloyds Banking Group shares, worth about UK£37m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Lloyds Banking Group Insider Transactions Indicate?
An insider sold Lloyds Banking Group shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Lloyds Banking Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lloyds Banking Group. For example - Lloyds Banking Group has 1 warning sign we think you should be aware of.
But note: Lloyds Banking Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.