Insiders Could Have Profited By Holding onto R&Q Insurance Holdings Shares Despite 41% Drop

Despite the fact that R&Q Insurance Holdings Ltd.'s (LON:RQIH) value has dropped 41% in the last week insiders who sold US$450k worth of stock in the past 12 months have had less success. Given that the average selling price of US$0.46 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for R&Q Insurance Holdings

R&Q Insurance Holdings Insider Transactions Over The Last Year

The Group CFO & Executive Director, Thomas Solomon, made the biggest insider sale in the last 12 months. That single transaction was for UK£287k worth of shares at a price of UK£0.53 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.03. So it may not tell us anything about how insiders feel about the current share price.

Insiders in R&Q Insurance Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of R&Q Insurance Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests R&Q Insurance Holdings insiders own 2.1% of the company, worth about UK£235k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About R&Q Insurance Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at R&Q Insurance Holdings are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing R&Q Insurance Holdings. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in R&Q Insurance Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.