Stock Analysis

Have Insiders Sold Barclays PLC (LON:BARC) Shares Recently?

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We wouldn't blame Barclays PLC (LON:BARC) shareholders if they were a little worried about the fact that Coimbatore Venkatakrishnan, the Group CEO & Executive Director recently netted about UK£1.1m selling shares at an average price of UK£1.69. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Barclays

Notably, that recent sale by Coimbatore Venkatakrishnan is the biggest insider sale of Barclays shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£1.38. So it may not shed much light on insider confidence at current levels.

Insiders in Barclays didn't buy any shares in 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!

LSE:BARC Insider Trading Volume March 16th 2023

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Does Barclays Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Barclays shares, worth about UK£27m. 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 Barclays Insider Transactions Indicate?

Insiders sold Barclays shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Barclays and understanding them should be part of your investment process.

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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