Goodwin MD of Mechanical Engineering Division & Executive Director Matthew Goodwin Sells 42% Of Holding

Some Goodwin PLC (LON:GDWN) shareholders may be a little concerned to see that the MD of Mechanical Engineering Division & Executive Director, Matthew Goodwin, recently sold a substantial UK£4.4m worth of stock at a price of UK£190 per share. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Goodwin

In fact, the recent sale by Matthew Goodwin was the biggest sale of Goodwin shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£199. 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. We note that the biggest single sale was only 42% of Matthew Goodwin's holding.

Happily, we note that in the last year insiders paid UK£434k for 6.47k shares. But insiders sold 100.43k shares worth UK£19m. In total, Goodwin insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Goodwin

I will like Goodwin better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Goodwin

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Goodwin insiders own 11% of the company, currently worth about UK£161m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Goodwin Tell Us?

Insiders sold Goodwin shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Goodwin is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Goodwin (of which 1 can't be ignored!) you should know about.

But note: Goodwin 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.