CEO & Executive Director Of Empresaria Group Sold 40% Of Their Shares \

We'd be surprised if Empresaria Group plc (LON:EMR) shareholders haven't noticed that the CEO & Executive Director, Rhona Driggs, recently sold UK£90k worth of stock at UK£0.62 per share. The eyebrow raising move amounted to a reduction of 40% in their holding.

Check out our latest analysis for Empresaria Group

Empresaria Group Insider Transactions Over The Last Year

Notably, that recent sale by Rhona Driggs is the biggest insider sale of Empresaria Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£0.63, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 40% of Rhona Driggs's stake.

Happily, we note that in the last year insiders paid UK£45k for 80.00k shares. On the other hand they divested 144.62k shares, for UK£90k. 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!

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Insider Ownership

Many investors like to check how much of a company is owned by 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. Empresaria Group insiders own 43% of the company, currently worth about UK£13m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Empresaria Group Tell Us?

An insider sold Empresaria Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Empresaria Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that Empresaria Group is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

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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.