Stock Analysis

Crest Nicholson Holdings plc (LON:CRST) Insiders Increased Their Holdings

  •  Updated
LSE:CRST
Source: Shutterstock

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Crest Nicholson Holdings plc (LON:CRST), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Crest Nicholson Holdings

The Last 12 Months Of Insider Transactions At Crest Nicholson Holdings

The CEO & Director, Peter Truscott, made the biggest insider sale in the last 12 months. That single transaction was for UK£336k worth of shares at a price of UK£4.98 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (UK£3.11). So it may not tell us anything about how insiders feel about the current share price. Notably Peter Truscott was also the biggest buyer, having purchased UK£528k worth of shares.

Happily, we note that in the last year insiders paid UK£528k for 255.43k shares. But they sold 83.55k shares for UK£416k. In the last twelve months there was more buying than selling by Crest Nicholson Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE:CRST Insider Trading Volume January 6th 2021

Crest Nicholson Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Crest Nicholson Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Crest Nicholson Holdings insiders own 0.5% of the company, worth about UK£3.7m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Crest Nicholson Holdings Insiders?

It doesn't really mean much that no insider has traded Crest Nicholson Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Crest Nicholson Holdings insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Crest Nicholson Holdings. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Crest Nicholson Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

If you’re looking to trade Crest Nicholson Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Crest Nicholson Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis