Despite low prices, Manolete Partners Plc (LON:MANO) insiders sold UK£1.8m worth of shares last year probably anticipating weakness

By
Simply Wall St
Published
November 27, 2021
AIM:MANO
Source: Shutterstock

Manolete Partners Plc's (LON:MANO) stock price has dropped 16% in the previous week, but insiders who sold UK£1.8m in stock over the past year have had less luck. Given that the average selling price of UK£1.80 is still lower than the current share price, insiders would probably have been better off keeping 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.

View our latest analysis for Manolete Partners

The Last 12 Months Of Insider Transactions At Manolete Partners

The CEO & Executive Director, Steven Cooklin, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.4m worth of shares at a price of UK£1.80 each. That means that an insider was selling shares at slightly below the current price (UK£2.53). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.6% of Steven Cooklin's stake. The only individual insider seller over the last year was Steven Cooklin.

Happily, we note that in the last year insiders paid UK£30k for 15.00k shares. But insiders sold 1.00m shares worth UK£1.8m. Steven Cooklin divested 1.00m shares over the last 12 months at an average price of UK£1.80. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
AIM:MANO Insider Trading Volume November 28th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Manolete Partners insiders own 56% of the company, worth about UK£61m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Manolete Partners Tell Us?

The fact that there have been no Manolete Partners insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Manolete Partners insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Manolete Partners.

Of course Manolete Partners 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.