How Many Chemring Group PLC (LON:CHG) Shares Have Insiders Sold, In The Last Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Chemring Group PLC (LON:CHG), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Chemring Group

The Last 12 Months Of Insider Transactions At Chemring Group

Over the last year, we can see that the biggest insider sale was by the Group Legal Director, Sarah Ellard, for UK£78k worth of shares, at about UK£2.67 per share. That means that an insider was selling shares at slightly below the current price (UK£2.99). 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 only 30% of Sarah Ellard's holding. Sarah Ellard was the only individual insider to sell over the last year.

Sarah Ellard ditched 60.18k shares over the year. The average price per share was UK£2.51. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Chemring Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Chemring Group insiders own 0.1% of the company, worth about UK£1.1m. I generally like to see higher levels of ownership.

So What Do The Chemring Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Chemring Group shares in the last quarter. The insider transactions at Chemring Group are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Chemring Group.

Of course Chemring Group 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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