Some Howden Joinery Group Plc (LON:HWDN) shareholders may be a little concerned to see that the Chief Operating Officer of Howden Joinery Supply Division, Robert Fenwick, recently sold a whopping UK£637k worth of stock at a price of UK£5.76 per share. That diminished their holding by a very significant 96%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Howden Joinery Group
Notably, that recent sale by Robert Fenwick is the biggest insider sale of Howden Joinery Group shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of UK£5.83. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was 96% of Robert Fenwick’s holding.
Happily, we note that in the last year insiders paid UK£175k for 36361 shares. But they sold 145549 for UK£827k. All up, insiders sold more shares in Howden Joinery Group than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Howden Joinery Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Howden Joinery Group insiders own 0.2% of the company, worth about UK£8.6m. 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 Howden Joinery Group Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But it is good to see that Howden Joinery Group is growing earnings. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. We’d certainly think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Howden Joinery Group.
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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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.