Have Insiders Sold NatWest Group Shares Recently?

We wouldn't blame NatWest Group plc (LON:NWG) shareholders if they were a little worried about the fact that John-Paul Thwaite, the Group CEO & Executive Director recently netted about UK£778k selling shares at an average price of UK£5.30. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At NatWest Group

Over the last year, we can see that the biggest insider sale was by the Group CFO & Executive Director, Katie Murray, for UK£2.1m worth of shares, at about UK£3.92 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£5.48. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 49% of Katie Murray's stake.

In the last twelve months insiders purchased 27.10k shares for UK£125k. But insiders sold 792.01k shares worth UK£3.4m. Over the last year we saw more insider selling of NatWest Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for NatWest Group

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Insider Ownership Of NatWest Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that NatWest Group insiders own 0.02% of the company, worth about UK£9.0m. 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 Does This Data Suggest About NatWest Group Insiders?

The stark truth for NatWest Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, NatWest Group makes money, and is growing profits. When you consider that most companies have higher levels of insider ownership, we're a little wary. 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. Every company has risks, and we've spotted 2 warning signs for NatWest Group you should know about.

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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.