Have Dart Group PLC (LON:DTG) Insiders Been Selling Their Stock?

Some Dart Group PLC (LON:DTG) shareholders may be a little concerned to see that the Executive Chairman & CEO, Philip Meeson, recently sold a substantial UK£5.1m worth of stock at a price of UK£6.80 per share. However, that sale only accounted for 1.6% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Dart Group

Notably, that recent sale by Executive Chairman & CEO Philip Meeson was not the only time they sold Dart Group shares this year. They previously made an even bigger sale of -UK£14.1m worth of shares at a price of UK£14.41 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£6.62. So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 40.00k shares worth UK£122k. But insiders sold 1.75m shares worth UK£19m. Philip Meeson ditched 1.75m shares over the year. The average price per share was UK£11.00. 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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dart Group insiders own about UK£316m worth of shares (which is 27% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Dart Group Insider Transactions Indicate?

An insider hasn't bought Dart Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Dart Group has 5 warning signs and it would be unwise to ignore these.

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, but not derivative transactions.

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