Have Mears Group Insiders Been Selling Stock?

We wouldn't blame Mears Group plc (LON:MER) shareholders if they were a little worried about the fact that David Miles, a company insider, recently netted about UK£540k selling shares at an average price of UK£3.61. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

See our latest analysis for Mears Group

The Last 12 Months Of Insider Transactions At Mears Group

Notably, that recent sale by David Miles is the biggest insider sale of Mears Group 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£3.66. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 25% of David Miles's stake.

Happily, we note that in the last year insiders paid UK£178k for 56.48k shares. On the other hand they divested 249.22k shares, for UK£900k. All up, insiders sold more shares in Mears Group than they bought, over the last year. The sellers received a price of around UK£3.61, on average. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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 are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Mears Group 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. From looking at our data, insiders own UK£1.2m worth of Mears Group stock, about 0.3% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Mears Group Tell Us?

Unfortunately, there has been more insider selling of Mears Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Mears Group is growing earnings. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. 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. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Mears Group.

But note: Mears 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com