Experian plc's (LON:EXPN)) market cap declines to UK£23b but insiders who sold US$3.5m stock were able to hedge their losses

By
Simply Wall St
Published
May 21, 2022
LSE:EXPN
Source: Shutterstock

Over the past year, insiders sold US$3.5m worth of Experian plc (LON:EXPN) stock at an average price of US$32.48 per share allowing them to get the most out of their money. The company's market worth decreased by UK£1.3b over the past week after the stock price dropped 5.3%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Experian

The Last 12 Months Of Insider Transactions At Experian

The Executive Director, Kerry Williams, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.9m worth of shares at a price of UK£32.46 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (UK£25.53). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Experian shares, than buying. 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!

insider-trading-volume
LSE:EXPN Insider Trading Volume May 21st 2022

I will like Experian 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 Experian Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Experian insiders own about UK£28m worth of shares. That equates to 0.1% 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 Experian Tell Us?

The fact that there have been no Experian insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Experian insiders. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Experian and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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