This Insider Has Just Sold Shares In Macfarlane Group

We'd be surprised if Macfarlane Group PLC (LON:MACF) shareholders haven't noticed that the Chief Executive & Executive Director, Peter Atkinson, recently sold UK£226k worth of stock at UK£1.34 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.

View our latest analysis for Macfarlane Group

Macfarlane Group Insider Transactions Over The Last Year

Notably, that recent sale by Peter Atkinson is the biggest insider sale of Macfarlane Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£1.35, 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. This single sale was just 10% of Peter Atkinson's stake.

Insiders in Macfarlane Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Macfarlane 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Macfarlane Group insiders have about 1.0% of the stock, worth approximately UK£2.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Do The Macfarlane Group Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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 Macfarlane Group you should know about.

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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.