Deputy Chief Executive Officer Of CMC Markets Sold 33% Of Their Shares

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We wouldn't blame CMC Markets Plc (LON:CMCX) shareholders if they were a little worried about the fact that David Fineberg, the Deputy Chief Executive Officer recently netted about UK£426k selling shares at an average price of UK£2.22. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At CMC Markets

In fact, the recent sale by David Fineberg was the biggest sale of CMC Markets shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of UK£2.30. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

David Fineberg divested 300.00k shares over the last 12 months at an average price of UK£2.33. 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!

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Insider Ownership Of CMC Markets

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. CMC Markets insiders own 64% of the company, currently worth about UK£402m based on the recent share price. 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 CMC Markets Tell Us?

An insider hasn't bought CMC Markets stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that CMC Markets is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CMC Markets. For example - CMC Markets has 2 warning signs we think you should be aware of.

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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.