Don't Ignore The Insider Selling In Hollywood Bowl Group

We'd be surprised if Hollywood Bowl Group plc (LON:BOWL) shareholders haven't noticed that the Independent Non-Executive Director, Ivan Schofield, recently sold UK£133k worth of stock at UK£3.32 per share. The eyebrow raising move amounted to a reduction of 24% in their holding.

View our latest analysis for Hollywood Bowl Group

Hollywood Bowl Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CFO & Non-Independent Executive Director, Laurence Keen, sold UK£319k worth of shares at a price of UK£2.97 per share. That means that even when the share price was below the current price of UK£3.28, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.6% of Laurence Keen's holding.

Hollywood Bowl Group insiders didn't buy any shares over the last year. 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!

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).

Does Hollywood Bowl Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.2% of Hollywood Bowl Group shares, worth about UK£24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Hollywood Bowl Group Insiders?

Insiders haven't bought Hollywood Bowl Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Hollywood Bowl Group.

But note: Hollywood Bowl Group 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.