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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Games Workshop Group PLC (LON:GAW), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Games Workshop Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director, Kevin Rountree, for UK£511k worth of shares, at about UK£28.95 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of UK£49.38. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was 54.8% of Kevin Rountree’s holding. Kevin Rountree was the only individual insider to sell over the last year. Notably Kevin Rountree was also the biggest buyer, having purchased UK£182k worth of shares.
Over the last year, we can see that insiders have bought 4672 shares worth UK£182k. But they sold 17659 for UK£511k. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Are Games Workshop Group Insiders Buying Or Selling?
We saw some Games Workshop Group insider buying shares in the last three months. CEO & Executive Director Kevin Rountree shelled out UK£5.1k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Games Workshop Group
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. Games Workshop Group insiders own 5.2% of the company, currently worth about UK£84m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Games Workshop Group Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. We don’t take much encouragement from the transactions by Games Workshop Group insiders. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Games Workshop Group.
Of course Games Workshop Group 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.