Have GlobalData Plc (LON:DATA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
January 17, 2022
AIM:DATA
Source: Shutterstock

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.

See our latest analysis for GlobalData

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!

insider-trading-volume
AIM:DATA Insider Trading Volume January 17th 2022

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

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.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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