Anyone interested in Morses Club PLC (LON:MCL) should probably be aware that the CEO & Director, Paul Smith, recently divested UK£198k worth of shares in the company, at an average price of UK£0.43 each. Equally important, that sale actually reduced their holding by a full 66% which hardly makes us feel bullish about the stock.
Morses Club Insider Transactions Over The Last Year
In fact, the recent sale by Paul Smith was the biggest sale of Morses Club shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.15. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 290.00k shares worth UK£179k. On the other hand they divested 677.83k shares, for UK£294k. In total, Morses Club insiders sold more than they bought over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. We usually like to see fairly high levels of insider ownership. Based on our data, Morses Club insiders have about 3.8% of the stock, worth approximately UK£771k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Morses Club Tell Us?
Insiders sold Morses Club shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. 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. At Simply Wall St, we found 6 warning signs for Morses Club that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.