Frontier IP Group's Stock Sinks To UK£0.41, But Insiders Sold Even Lower

Despite the fact that Frontier IP Group Plc's (LON:FIPP) value has dropped 12% in the last week insiders who sold UK£102k worth of stock in the past 12 months have had less success. The average selling price of UK£0.68 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Frontier IP Group

The Last 12 Months Of Insider Transactions At Frontier IP Group

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman, Kevin Richmond, for UK£102k worth of shares, at about UK£0.69 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£0.41). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Kevin Richmond.

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!

I will like Frontier IP Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Frontier IP 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Frontier IP Group insiders own 8.3% of the company, worth about UK£1.9m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Frontier IP Group Insider Transactions Indicate?

The fact that there have been no Frontier IP Group insider transactions recently certainly doesn't bother us. The insider transactions at Frontier IP Group are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frontier IP Group. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Frontier IP Group.

Of course Frontier IP Group 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.