Some GlobalData Plc (LON:DATA) shareholders may be a little concerned to see that the CEO & Executive Director, Michael Danson, recently sold a substantial UK£16m worth of stock at a price of UK£14.15 per share. However, that sale only accounted for 1.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At GlobalData
Notably, that recent sale by CEO & Executive Director Michael Danson was not the only time they sold GlobalData shares this year. Earlier in the year, they fetched UK£16.50 per share in a -UK£17m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£14.15). So it is hard to draw any strong conclusion from it.
In the last year GlobalData insiders didn't buy any company stock. 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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Insider Ownership of GlobalData
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that GlobalData insiders own 67% of the company, worth about UK£1.1b. 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 GlobalData Tell Us?
An insider 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 GlobalData is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that GlobalData has 1 warning sign and it would be unwise to ignore it.
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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, but not derivative transactions.
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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.