Don't Ignore The Fact That This Insider Just Sold Some Shares In PageGroup plc (LON:PAGE)

We'd be surprised if PageGroup plc (LON:PAGE) shareholders haven't noticed that the CFO, Member of Executive Board & Executive Director, Kelvin Stagg, recently sold UK£111k worth of stock at UK£4.44 per share. On the bright side, that sale was only 5.3% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for PageGroup

The Last 12 Months Of Insider Transactions At PageGroup

Notably, that recent sale by Kelvin Stagg is the biggest insider sale of PageGroup shares that we've seen in the last year. That means that an insider was selling shares at below the current price (UK£4.44). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.3%of Kelvin Stagg's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 PageGroup

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£1.9m worth of PageGroup stock, about 0.1% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About PageGroup Insiders?

An insider sold PageGroup shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since PageGroup is profitable and growing, we're not too worried by this. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. 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. Every company has risks, and we've spotted 3 warning signs for PageGroup (of which 1 is concerning!) you should know about.

But note: PageGroup 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. 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.