Have Loungers Insiders Been Selling Stock?

We'd be surprised if Loungers plc (LON:LGRS) shareholders haven't noticed that the CEO & Director, Nicholas Charles Collins, recently sold UK£287k worth of stock at UK£2.21 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Loungers

The Last 12 Months Of Insider Transactions At Loungers

The Founder, Alexander Reilley, made the biggest insider sale in the last 12 months. That single transaction was for UK£380k worth of shares at a price of UK£1.90 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£2.09. 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. 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. It is worth noting that this sale was only 2.9% of Alexander Reilley's holding.

All up, insiders sold more shares in Loungers than they bought, over the last year. You can see the insider transactions (by companies and 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Loungers

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. It appears that Loungers insiders own 14% of the company, worth about UK£30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Loungers Insider Transactions Indicate?

An insider sold Loungers shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Loungers. For example - Loungers has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.