Insiders Who Sold Ten Lifestyle Group Made The Right Call As Market Cap Slides By UK£5.8m

By selling UK£270k worth of Ten Lifestyle Group Plc (LON:TENG) stock at an average sell price of UK£0.45 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 10% last week, the company's market value declined by UK£5.8m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Ten Lifestyle Group

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Andrew Long, sold UK£270k worth of shares at a price of UK£0.45 per share. That means that even when the share price was below the current price of UK£0.53, an insider wanted to cash in some shares. 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. 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 19% of Andrew Long's stake. Andrew Long was the only individual insider to sell 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!

See our latest analysis for Ten Lifestyle Group

I will like Ten Lifestyle Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Ten Lifestyle 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Ten Lifestyle Group insiders own about UK£7.4m worth of shares (which is 15% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Ten Lifestyle Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Ten Lifestyle Group shares in the last quarter. Our analysis of Ten Lifestyle Group insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ten Lifestyle Group. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Ten Lifestyle Group.

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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 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.