Don't Ignore The Insider Selling In FleetPartners Group

We wouldn't blame FleetPartners Group Limited (ASX:FPR) shareholders if they were a little worried about the fact that Damien Berrell, the CEO, MD & Director recently netted about AU$741k selling shares at an average price of AU$3.54. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

View our latest analysis for FleetPartners Group

The Last 12 Months Of Insider Transactions At FleetPartners Group

In fact, the recent sale by Damien Berrell was the biggest sale of FleetPartners Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$3.49. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 33.24k shares for AU$109k. On the other hand they divested 209.23k shares, for AU$741k. You can see the insider transactions (by companies and 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!

I will like FleetPartners Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does FleetPartners Group Boast High 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. Insiders own 1.0% of FleetPartners Group shares, worth about AU$8.1m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The FleetPartners Group Insider Transactions Indicate?

Unfortunately, there has been more insider selling of FleetPartners Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since FleetPartners Group is profitable and growing, we're not too worried by this. 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 practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that FleetPartners Group has 3 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com