Have Mercia Asset Management PLC (LON:MERC) Insiders Been Selling Their Stock?

Anyone interested in Mercia Asset Management PLC (LON:MERC) should probably be aware that the Non-Executive Director & Co-Founder, Raymond Chamberlain, recently divested UK£249k worth of shares in the company, at an average price of UK£0.30 each. On the bright side, that sale was only 3.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Mercia Asset Management

The Last 12 Months Of Insider Transactions At Mercia Asset Management

Notably, that recent sale by Raymond Chamberlain is the biggest insider sale of Mercia Asset Management shares that we've seen in the last year. That means that an insider was selling shares at below the current price (UK£0.30). 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. This single sale was just 3.5% of Raymond Chamberlain's stake.

In the last twelve months insiders purchased 1.95m shares for UK£404k. On the other hand they divested 830.00k shares, for UK£249k. In total, Mercia Asset Management insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Mercia Asset Management is not the only stock that insiders are buying. 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 of Mercia Asset Management

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Mercia Asset Management insiders own 14% of the company, worth about UK£19m. 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 Mercia Asset Management Insider Transactions Indicate?

The stark truth for Mercia Asset Management is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. 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. For instance, we've identified 3 warning signs for Mercia Asset Management (1 is a bit unpleasant) you should be aware of.

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. 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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