Have Insiders Sold Redrow plc (LON:RDW) Shares Recently?

Some Redrow plc (LON:RDW) shareholders may be a little concerned to see that the Non-Executive Chairman, John Tutte, recently sold a substantial UK£2.2m worth of stock at a price of UK£5.54 per share. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Redrow

The Last 12 Months Of Insider Transactions At Redrow

Notably, that recent sale by John Tutte is the biggest insider sale of Redrow shares that we've seen in the last year. That means that an insider was selling shares at around the current price of UK£5.49. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Redrow better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Redrow Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Redrow insiders own about UK£9.0m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Redrow Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Redrow. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Redrow.

But note: Redrow 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, but not derivative transactions.

If you’re looking to trade Redrow, 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

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.