Divisional MD of Housebuilding Products Division & Executive Director Michael Leaf Sold A Bunch Of Shares In Alumasc Group

We'd be surprised if The Alumasc Group plc (LON:ALU) shareholders haven't noticed that the Divisional MD of Housebuilding Products Division & Executive Director, Michael Leaf, recently sold UK£343k worth of stock at UK£3.81 per share. Equally important, that sale actually reduced their holding by a full 62% which hardly makes us feel bullish about the stock.

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Alumasc Group Insider Transactions Over The Last Year

Notably, that recent sale by Michael Leaf is the biggest insider sale of Alumasc Group shares that we've seen in the last year. That means that an insider was selling shares at around the current price of UK£3.73. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Michael Leaf sold a total of 98.37k shares over the year at an average price of UK£3.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Alumasc Group

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Insider Ownership Of Alumasc Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Alumasc Group shares, worth about UK£30m. 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 Alumasc Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Alumasc Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Alumasc Group has 2 warning signs and it would be unwise to ignore these.

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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.