Trade Alert: Head of Sustainability & Company Secretary Of Cairn Homes Tara Grimley Has Sold Stock

We wouldn't blame Cairn Homes plc (LON:CRN) shareholders if they were a little worried about the fact that Tara Grimley, the Head of Sustainability & Company Secretary recently netted about UK£407k selling shares at an average price of UK£1.71. That diminished their holding by a very significant 99%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Cairn Homes

Cairn Homes Insider Transactions Over The Last Year

In fact, the recent sale by Tara Grimley was the biggest sale of Cairn Homes 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£1.75). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 99% of Tara Grimley's stake.

Over the last year we saw more insider selling of Cairn Homes shares, than buying. 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!

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).

Does Cairn Homes Boast High Insider Ownership?

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. It appears that Cairn Homes insiders own 2.4% of the company, worth about UK£26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cairn Homes Tell Us?

An insider hasn't bought Cairn Homes stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Cairn Homes is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cairn Homes. Every company has risks, and we've spotted 2 warning signs for Cairn Homes you should know about.

But note: Cairn Homes 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.