Justin Apthorp Is The Non-Executive Director of Naked Wines plc (LON:WINE) And They Just Sold 67% Of Their Shares

We wouldn't blame Naked Wines plc (LON:WINE) shareholders if they were a little worried about the fact that Justin Apthorp, the Non-Executive Director recently netted about UK£590k selling shares at an average price of UK£5.90. Probably the most concerning element of the whole transaction is that the disposal amounted to 67% of their entire holding.

Check out our latest analysis for Naked Wines

Naked Wines Insider Transactions Over The Last Year

Notably, that recent sale by Justin Apthorp is the biggest insider sale of Naked Wines shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£6.32. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 67% of Justin Apthorp's stake.

In the last twelve months insiders purchased 67.82k shares for UK£212k. But insiders sold 100.00k shares worth UK£590k. 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 Naked Wines

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Naked Wines insiders own 6.2% of the company, worth about UK£28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Naked Wines Tell Us?

The stark truth for Naked Wines is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Naked Wines. In terms of investment risks, we've identified 2 warning signs with Naked Wines and understanding them should be part of your investment process.

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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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.
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