This Insider Has Just Sold Shares In Tatton Asset Management

Some Tatton Asset Management plc (LON:TAM) shareholders may be a little concerned to see that the CEO & Executive Director, Paul Hogarth, recently sold a substantial UK£1.1m worth of stock at a price of UK£5.61 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.1%.

See our latest analysis for Tatton Asset Management

Tatton Asset Management Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Executive Director Paul Hogarth was not the only time they sold Tatton Asset Management shares this year. Earlier in the year, they fetched UK£5.29 per share in a -UK£1.8m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£5.68. 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. This single sale was just 10% of Paul Hogarth's stake.

Tatton Asset Management insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insider Ownership

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. Tatton Asset Management insiders own about UK£31m worth of shares. That equates to 9.2% 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 Does This Data Suggest About Tatton Asset Management Insiders?

Insiders sold Tatton Asset Management shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Tatton Asset Management is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Every company has risks, and we've spotted 2 warning signs for Tatton Asset Management you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.