Who Has Been Selling Meggitt PLC (LON:MGGT) Shares?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Meggitt PLC (LON:MGGT).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Meggitt

Meggitt Insider Transactions Over The Last Year

The Independent Non-Executive Chairman, Anthony Rudd, made the biggest insider sale in the last 12 months. That single transaction was for UK£924k worth of shares at a price of UK£6.42 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of UK£3.12. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Anthony Rudd. Notably Anthony Rudd was also the biggest buyer, having purchased UK£701k worth of shares.

Happily, we note that in the last year insiders paid UK£701k for 161.20k shares. But they sold 143.85k shares for UK£924k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Have Meggitt Insiders Traded Recently?

We've only seen a tiny insider purchase valued at UK£1.8k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does Meggitt Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own UK£3.0m worth of Meggitt stock, about 0.1% of the company. We consider this fairly low insider ownership.

So What Do The Meggitt Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. We don't take much encouragement from the transactions by Meggitt insiders. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meggitt. For example - Meggitt has 1 warning sign we think you should be aware of.

But note: Meggitt 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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