15% Of This Serco Group Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Serco Group plc's (LON:SRP ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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 Serco Group

Serco Group Insider Transactions Over The Last Year

The insider, Rupert Soames, made the biggest insider sale in the last 12 months. That single transaction was for UK£3.2m worth of shares at a price of UK£1.70 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£1.41. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Rupert Soames.

Over the last year, we can see that insiders have bought 52.39k shares worth UK£80k. But they sold 3.77m shares for UK£6.3m. Rupert Soames divested 3.77m shares over the last 12 months at an average price of UK£1.66. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Serco Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Have Serco Group Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Serco Group. Group CFO & Director Nigel Crossley shelled out UK£4.6k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Serco Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Serco Group insiders have about 0.2% of the stock, worth approximately UK£3.5m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Serco Group Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. The insider transactions at Serco Group are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Serco Group (1 makes us a bit uncomfortable) you should be aware of.

But note: Serco 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.