Have Insiders Sold Draper Esprit plc (LON:GROW) Shares Recently?

Some Draper Esprit plc (LON:GROW) shareholders may be a little concerned to see that the Co-Founder, Stuart Chapman, recently sold a substantial UK£2.0m worth of stock at a price of UK£6.69 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Draper Esprit

In fact, the recent sale by Stuart Chapman was the biggest sale of Draper Esprit shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£6.78. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 22%of Stuart Chapman's holding.

In the last twelve months insiders purchased 7.38k shares for UK£38k. On the other hand they divested 300.00k shares, for UK£2.0m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Draper Esprit 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 Draper Esprit

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Draper Esprit insiders own about UK£9.2m worth of shares. That equates to 1.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Draper Esprit Insider Transactions Indicate?

An insider hasn't bought Draper Esprit stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. In terms of investment risks, we've identified 2 warning signs with Draper Esprit and understanding these should be part of your investment process.

But note: Draper Esprit 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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