Have Insiders Sold Colefax Group Shares Recently?
Some Colefax Group PLC (LON:CFX) shareholders may be a little concerned to see that the Executive Chairman & CEO, David Green, recently sold a substantial UK£1.9m worth of stock at a price of UK£13.50 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Colefax Group
Notably, that recent sale by David Green is the biggest insider sale of Colefax Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£13.55, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 15% of David Green's holding.
In the last year Colefax Group insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Colefax Group
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Colefax Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Colefax Group insiders own 36% of the company, worth about UK£24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Colefax Group Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Colefax Group is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Colefax Group. In terms of investment risks, we've identified 2 warning signs with Colefax Group and understanding them should be part of your investment process.
But note: Colefax 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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