CEO & Executive Director Ronnie George Sold A Bunch Of Shares In Volution Group

Some Volution Group plc (LON:FAN) shareholders may be a little concerned to see that the CEO & Executive Director, Ronnie George, recently sold a substantial UK£13m worth of stock at a price of UK£5.60 per share. That diminished their holding by a very significant 57%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Volution Group

Volution Group Insider Transactions Over The Last Year

In fact, the recent sale by Ronnie George was the biggest sale of Volution Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£6.19, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 57% of Ronnie George's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Volution Group Boast High Insider Ownership?

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. It appears that Volution Group insiders own 1.6% of the company, worth about UK£20m. 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 Volution Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But since Volution Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Volution Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Volution Group.

But note: Volution Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.