We wouldn't blame IMI plc (LON:IMI) shareholders if they were a little worried about the fact that Daniel Shook, the Finance Director & Director recently netted about UK£392k selling shares at an average price of UK£13.18. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At IMI
In fact, the recent sale by Daniel Shook was the biggest sale of IMI shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of UK£12.99. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in IMI didn't buy any shares in 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests IMI insiders own 0.09% of the company, worth about UK£3.0m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At IMI Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since IMI is profitable and growing, we're not too worried by this. When you combine this with the relatively low insider ownership, we are very cautious about the stock. 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 IMI. At Simply Wall St, we found 3 warning signs for IMI that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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