Hollywood Bowl Group Non-Executive Chairman Peter Boddy Sells 34% Of Holding

We wouldn't blame Hollywood Bowl Group plc (LON:BOWL) shareholders if they were a little worried about the fact that Peter Boddy, the Non-Executive Chairman recently netted about UK£856k selling shares at an average price of UK£3.11. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

See our latest analysis for Hollywood Bowl Group

The Last 12 Months Of Insider Transactions At Hollywood Bowl Group

Notably, that recent sale by Peter Boddy is the biggest insider sale of Hollywood Bowl Group shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£3.14, 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. This single sale was just 34% of Peter Boddy's stake.

Over the last year we saw more insider selling of Hollywood Bowl Group shares, than buying. 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 Hollywood Bowl Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Hollywood Bowl Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hollywood Bowl Group insiders own about UK£21m worth of shares. That equates to 3.9% of the company. 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 Hollywood Bowl Group Tell Us?

An insider sold Hollywood Bowl Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Hollywood Bowl Group is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hollywood Bowl Group. For example - Hollywood Bowl Group has 2 warning signs we think you should be aware of.

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 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.