Trade Alert: Executive Director Of Cairn Homes Shane Doherty Has Sold Stock

We'd be surprised if Cairn Homes plc (LON:CRN) shareholders haven't noticed that the Executive Director, Shane Doherty, recently sold UK£383k worth of stock at UK£1.35 per share. Equally important, that sale actually reduced their holding by a full 51% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Cairn Homes

Cairn Homes Insider Transactions Over The Last Year

In fact, the recent sale by Shane Doherty was the biggest sale of Cairn Homes shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (UK£1.39). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 51% of Shane Doherty's holding.

All up, insiders sold more shares in Cairn Homes than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cairn Homes insiders own about UK£32m worth of shares. That equates to 3.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Cairn Homes Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Cairn Homes, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Cairn Homes is growing earnings. 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 Cairn Homes. Every company has risks, and we've spotted 2 warning signs for Cairn Homes you should know about.

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.