We’d be surprised if K3 Capital Group PLC (LON:K3C) shareholders haven’t noticed that the Executive Vice Chairman, Anthony John Ford, recently sold UK£252k worth of stock at UK£2.52 per share. On the bright side, that sale was only 1.6% of their holding, so we doubt it’s very meaningful, on its own.
View our latest analysis for K3 Capital Group
K3 Capital Group Insider Transactions Over The Last Year
In fact, the recent sale by Anthony John Ford was the biggest sale of K3 Capital Group shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of UK£2.57. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 1.6% of Anthony John Ford’s holding.
Over the last year, we can see that insiders have bought 193.13k shares worth UK£304k. On the other hand they divested 100000 shares, for UK£252k. Overall, K3 Capital Group insiders were net buyers last year. Their average price was about UK£1.58. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. K3 Capital Group insiders own about UK£50m worth of shares (which is 46% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At K3 Capital Group Tell Us?
Unfortunately, there has been more insider selling of K3 Capital Group stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn’t worry us. Of course, the future is what matters most. So if you are interested in K3 Capital Group, you should check out this free report on analyst forecasts for the company.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.