Have MJ Gleeson Insiders Been Selling Stock?

We wouldn't blame MJ Gleeson plc (LON:GLE) shareholders if they were a little worried about the fact that Christopher Mills, the Non-Executive Director recently netted about UK£1.8m selling shares at an average price of UK£6.10. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.7%.

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MJ Gleeson Insider Transactions Over The Last Year

In fact, the recent sale by Christopher Mills was the biggest sale of MJ Gleeson shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£6.22. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.7% of Christopher Mills's holding.

Over the last year, we can see that insiders have bought 21.52k shares worth UK£110k. But they sold 300.00k shares for UK£1.8m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does MJ Gleeson 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 looking at our data, insiders own UK£2.5m worth of MJ Gleeson stock, about 0.7% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About MJ Gleeson Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MJ Gleeson. Case in point: We've spotted 1 warning sign for MJ Gleeson you should be aware of.

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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.