Insiders At Keller Group Sold UK£462k In Stock, Alluding To Potential Weakness

Quite a few Keller Group plc (LON:KLR) insiders sold their shares over the past year, which may be a cause for concern. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Keller Group

The Last 12 Months Of Insider Transactions At Keller Group

The CEO & Director, Michael Speakman, made the biggest insider sale in the last 12 months. That single transaction was for UK£320k worth of shares at a price of UK£6.61 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£9.39. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 41% of Michael Speakman's stake.

Over the last year, we can see that insiders have bought 18.01k shares worth UK£119k. On the other hand they divested 69.90k shares, for UK£462k. In total, Keller Group insiders sold more than they bought over the last year. 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!

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 Keller Group Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Keller Group insiders have about 0.5% of the stock, worth approximately UK£3.3m. I generally like to see higher levels of ownership.

So What Do The Keller Group Insider Transactions Indicate?

The fact that there have been no Keller Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Keller Group insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Keller Group. While conducting our analysis, we found that Keller Group has 1 warning sign and it would be unwise to ignore it.

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 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.