Have Impellam Group plc (LON:IPEL) Insiders Been Selling Their Stock?

We'd be surprised if Impellam Group plc (LON:IPEL) shareholders haven't noticed that an insider, Derek O’Neill, recently sold UK£146k worth of stock at UK£7.14 per share. On the bright side, that sale was only 8.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Impellam Group

The Last 12 Months Of Insider Transactions At Impellam Group

Notably, that recent sale by Derek O’Neill is the biggest insider sale of Impellam Group shares that we've seen in the last year. That means that an insider was selling shares at below the current price (UK£7.15). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.4%of Derek O’Neill's holding.

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!

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

Does Impellam Group Boast High Insider Ownership?

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. Impellam Group insiders own about UK£260m worth of shares (which is 81% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Impellam Group Insider Transactions Indicate?

An insider sold Impellam Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Impellam Group makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. At Simply Wall St, we've found that Impellam Group has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

But note: Impellam Group 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, 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.