Stock Analysis

Have Berkeley Group Holdings Insiders Been Selling Stock?

LSE:BKG
Source: Shutterstock

We wouldn't blame The Berkeley Group Holdings plc (LON:BKG) shareholders if they were a little worried about the fact that Rob Perrins, the CEO & Executive Director recently netted about UK£10m selling shares at an average price of UK£52.48. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

Check out our latest analysis for Berkeley Group Holdings

The Last 12 Months Of Insider Transactions At Berkeley Group Holdings

In fact, the recent sale by Rob Perrins was the biggest sale of Berkeley Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of UK£52.20. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 730.00 shares worth UK£35k. On the other hand they divested 200.43k shares, for UK£11m. In total, Berkeley Group Holdings insiders sold more than they bought over the last year. 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!

insider-trading-volume
LSE:BKG Insider Trading Volume August 22nd 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Berkeley Group Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Berkeley Group Holdings insiders own 1.5% of the company, currently worth about UK£84m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Berkeley Group Holdings Tell Us?

Unfortunately, there has been more insider selling of Berkeley Group Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. When we did our research, we found 2 warning signs for Berkeley Group Holdings (1 can't be ignored!) that we believe deserve your full attention.

Of course Berkeley Group Holdings 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.

Valuation is complex, but we're here to simplify it.

Discover if Berkeley Group Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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

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.