Trade Alert: The Independent Non-Executive Director Of Games Workshop Group PLC (LON:GAW), Nicholas Donaldson, Has Sold Some Shares Recently

Some Games Workshop Group PLC (LON:GAW) shareholders may be a little concerned to see that the Independent Non-Executive Director, Nicholas Donaldson, recently sold a substantial UK£778k worth of stock at a price of UK£97.21 per share. That's a big disposal, and it decreased their holding size by 48%, which is notable but not too bad.

See our latest analysis for Games Workshop Group

The Last 12 Months Of Insider Transactions At Games Workshop Group

In fact, the recent sale by Nicholas Donaldson was the biggest sale of Games Workshop Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of UK£95.55. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid UK£73k for 815.00 shares. But insiders sold 8.00k shares worth UK£778k. 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: insiders have been buying them).

Insider Ownership of Games Workshop Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own UK£3.5m worth of Games Workshop Group stock, about 0.1% of the company. We prefer to see high levels of insider ownership.

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

An insider hasn't bought Games Workshop Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Games Workshop Group makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Games Workshop Group.

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.

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