Have Insiders Sold Avation Shares Recently?

We'd be surprised if Avation PLC (LON:AVAP) shareholders haven't noticed that the Non-Executive Director, Roderick Douglas Mahoney, recently sold UK£201k worth of stock at UK£1.43 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.

Check out our latest analysis for Avation

The Last 12 Months Of Insider Transactions At Avation

The Executive Chairman, Robert Jeffries Chatfield, made the biggest insider sale in the last 12 months. That single transaction was for UK£375k worth of shares at a price of UK£1.25 each. That means that an insider was selling shares at slightly below the current price (UK£1.35). 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. We note that the biggest single sale was 53% of Robert Jeffries Chatfield's holding.

In total, Avation insiders sold more than they bought over 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!

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Insider Ownership Of Avation

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Avation insiders own 1.5% of the company, worth about UK£1.4m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Avation Insiders?

An insider sold Avation shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. 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! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avation. For example, Avation has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course Avation may not be the best stock to buy. So you may wish to see this free collection of high quality 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