One Morgan Sindall Group Insider Has Reduced Their Stake

From what we can see, insiders were net sellers in Morgan Sindall Group plc's (LON:MGNS ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Morgan Sindall Group

Over the last year, we can see that the biggest insider sale was by the Founder, John Morgan, for UK£1.1m worth of shares, at about UK£38.85 per share. That means that an insider was selling shares at slightly below the current price (UK£42.30). 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. 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 0.9% of John Morgan's stake. John Morgan was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 1.89k shares for UK£71k. But insiders sold 28.51k shares worth UK£1.1m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Morgan Sindall Group

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Morgan Sindall Group Insiders Bought Stock Recently

There was some insider buying at Morgan Sindall Group over the last quarter. CFO & Director Kelly Gangotra purchased UK£30k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Morgan Sindall Group insiders own about UK£141m worth of shares (which is 7.1% of the company). 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 Morgan Sindall Group Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. While we gain confidence from high insider ownership of Morgan Sindall Group, we can't say the same about their transactions in the last year, in the absence of further purchases. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Morgan Sindall Group (1 shouldn't be ignored) you should be aware of.

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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.