CFO & Executive Director Rachel Tongue Sold A Bunch Of Shares In Games Workshop Group

We wouldn't blame Games Workshop Group PLC (LON:GAW) shareholders if they were a little worried about the fact that Rachel Tongue, the CFO & Executive Director recently netted about UK£712k selling shares at an average price of UK£94.89. That diminished their holding by a very significant 67%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Games Workshop Group

Games Workshop Group Insider Transactions Over The Last Year

In fact, the recent sale by Rachel Tongue was the biggest sale of Games Workshop Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£97.55, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 67% of Rachel Tongue's holding.

In the last twelve months insiders purchased 4.87k shares for UK£549k. But they sold 7.50k shares for UK£712k. 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!

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

Does Games Workshop Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Games Workshop Group insiders have about 0.09% of the stock, worth approximately UK£2.7m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Games Workshop Group Tell Us?

Unfortunately, there has been more insider selling of Games Workshop Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Games Workshop Group is growing earnings. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. For example - Games Workshop Group has 2 warning signs we think you should be aware of.

But note: Games Workshop Group 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.