Have Insiders Sold AJ Bell Shares Recently?

Anyone interested in AJ Bell plc (LON:AJB) should probably be aware that the MD of Advised & Member of Management Board, Billy Mackay, recently divested UK£200k worth of shares in the company, at an average price of UK£3.93 each. On the bright side, that sale was only 3.3% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for AJ Bell

The Last 12 Months Of Insider Transactions At AJ Bell

The Non-Independent & Non-Executive Director Leslie Platts made the biggest insider purchase in the last 12 months. That single transaction was for UK£241k worth of shares at a price of UK£2.81 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£3.85. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 153.85k shares for UK£447k. But insiders sold 283.47k shares worth UK£898k. All up, insiders sold more shares in AJ Bell than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does AJ Bell Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AJ Bell insiders own 22% of the company, currently worth about UK£349m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The AJ Bell Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at AJ Bell, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that AJ Bell is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - AJ Bell has 2 warning signs we think you should be aware of.

But note: AJ Bell 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 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.