Trade Alert: The CEO & Director Of Knights Group Holdings plc (LON:KGH), Andrew Beech, Has Sold Some Shares Recently

Some Knights Group Holdings plc (LON:KGH) shareholders may be a little concerned to see that the CEO & Director, Andrew Beech, recently sold a substantial UK£61m worth of stock at a price of UK£3.90 per share. That sale reduced their total holding by 48% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Knights Group Holdings

The Last 12 Months Of Insider Transactions At Knights Group Holdings

Notably, that recent sale by Andrew Beech is the biggest insider sale of Knights Group Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£3.91. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 48% of Andrew Beech's stake.

In the last twelve months insiders purchased 30.79k shares for UK£126k. On the other hand they divested 16.46m shares, for UK£64m. In total, Knights Group Holdings insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Knights Group Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Knights Group Holdings Boast High Insider Ownership?

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 Knights Group Holdings insiders own 41% of the company, worth about UK£132m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Knights Group Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. For example - Knights Group Holdings has 2 warning signs we think you should be aware of.

But note: Knights Group Holdings 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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