Have The SimplyBiz Group plc (LON:SBIZ) Insiders Been Selling Their Stock?

We'd be surprised if The SimplyBiz Group plc (LON:SBIZ) shareholders haven't noticed that an insider, S. Zahid Bilgrami, recently sold UK£99k worth of stock at UK£1.80 per share. However, the silver lining is that the sale only reduced their total holding by 3.0%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for SimplyBiz Group

SimplyBiz Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Deputy Chairman Gary Hughes bought UK£100k worth of shares at a price of UK£1.85 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.82). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid UK£202k for 116.64k shares. But insiders sold 55.00k shares worth UK£99k. In total, SimplyBiz Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SimplyBiz Group is not the only stock that insiders are buying. 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 SimplyBiz Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. SimplyBiz Group insiders own about UK£54m worth of shares. That equates to 31% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SimplyBiz Group Tell Us?

An insider hasn't bought SimplyBiz Group stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. 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 3 warning signs for SimplyBiz Group you should know about.

But note: SimplyBiz 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. 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.
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