Have Insiders Sold Colefax Group Shares Recently?

We wouldn't blame Colefax Group PLC (LON:CFX) shareholders if they were a little worried about the fact that David Green, the Chairman & CEO recently netted about UK£1.3m selling shares at an average price of UK£7.00. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Colefax Group

Colefax Group Insider Transactions Over The Last Year

In fact, the recent sale by David Green was the biggest sale of Colefax Group 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£7.60). 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 13% of David Green's stake.

Insiders in Colefax Group 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Colefax Group insiders own 35% of the company, worth about UK£16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Colefax Group Tell Us?

Insiders haven't bought Colefax Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Colefax Group (1 is significant!) that we believe deserve your full attention.

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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.