Trainline Insiders Benefitted From Selling Stock At UK£2.57

While it’s been a great week for Trainline plc (LON:TRN) shareholders after stock gained 11%, not so much for insiders who sold stock over the past year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Trainline Insider Transactions Over The Last Year

The CEO & Executive Director, Jody Ford, made the biggest insider sale in the last 12 months. That single transaction was for UK£191k worth of shares at a price of UK£2.57 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£2.92. 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 7.2% of Jody Ford's holding.

Trainline 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!

See our latest analysis for Trainline

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Insider Ownership Of Trainline

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Trainline shares, worth about UK£4.5m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Trainline Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Trainline shares in the last quarter. Our analysis of Trainline insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. Of course, the future is what matters most. So if you are interested in Trainline, you should check out this free report on analyst forecasts for the company.

Of course Trainline may not be the best stock to buy. So you may wish to see this free collection of high quality 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.