Have Gresham House plc (LON:GHE) Insiders Been Selling Their Stock?

Anyone interested in Gresham House plc (LON:GHE) should probably be aware that the CEO & Executive Director, Anthony Dalwood, recently divested UK£309k worth of shares in the company, at an average price of UK£8.23 each. On the bright side, that sale was only 4.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Gresham House

The Last 12 Months Of Insider Transactions At Gresham House

Notably, that recent sale by CEO & Executive Director Anthony Dalwood was not the only time they sold Gresham House shares this year. Earlier in the year, they fetched UK£7.27 per share in a -UK£527k sale. That means that even when the share price was below the current price of UK£8.20, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 7.6%of Anthony Dalwood's holding.

In the last year Gresham House insiders didn't buy any company stock. 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!

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

Insider Ownership of Gresham House

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gresham House insiders own about UK£22m worth of shares. That equates to 9.0% 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.

So What Do The Gresham House Insider Transactions Indicate?

An insider hasn't bought Gresham House 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. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Gresham House you should know about.

But note: Gresham House 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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