Trade Alert: CEO & Executive Director Of Wilmington Mark Milner Has Sold Stock

We wouldn't blame Wilmington plc (LON:WIL) shareholders if they were a little worried about the fact that Mark Milner, the CEO & Executive Director recently netted about UK£474k selling shares at an average price of UK£3.22. That's a big disposal, and it decreased their holding size by 38%, which is notable but not too bad.

View our latest analysis for Wilmington

Wilmington Insider Transactions Over The Last Year

In fact, the recent sale by Mark Milner was the biggest sale of Wilmington shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (UK£3.40). 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 38% of Mark Milner's stake.

Insiders in Wilmington didn't buy any shares in 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Wilmington insiders have about 0.3% of the stock, worth approximately UK£828k. We consider this fairly low insider ownership.

So What Does This Data Suggest About Wilmington Insiders?

Insiders sold Wilmington shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. 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. While conducting our analysis, we found that Wilmington has 3 warning signs and it would be unwise to ignore these.

Of course Wilmington may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.