17% Of This EARNZ Insider's Holdings Were Sold

Viewing insider transactions for EARNZ plc's (LON:EARN ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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EARNZ Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Robert Holt, for UK£150k worth of shares, at about UK£0.06 per share. So what is clear is that an insider saw fit to sell at around the current price of UK£0.055. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Robert Holt was the only individual insider to sell shares in the last twelve months. Notably Robert Holt was also the biggest buyer, having purchased UK£33k worth of shares.

Happily, we note that in the last year insiders paid UK£33k for 627.30k shares. But insiders sold 2.68m shares worth UK£157k. Robert Holt sold a total of 2.68m shares over the year at an average price of UK£0.059. 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 EARNZ

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Are EARNZ Insiders Buying Or Selling?

Secretary John William Charlton bought just UK£3.5k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership Of EARNZ

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that EARNZ insiders own 16% of the company, worth about UK£1.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About EARNZ Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Our analysis of EARNZ insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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 4 warning signs for EARNZ you should know about.

But note: EARNZ 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 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.