Trade Alert: The Group Commercial Director Of CMC Markets plc (LON:CMCX), David Fineberg, Has Sold Some Shares Recently

We wouldn't blame CMC Markets plc (LON:CMCX) shareholders if they were a little worried about the fact that David Fineberg, the Group Commercial Director recently netted about UK£990k selling shares at an average price of UK£3.90. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for CMC Markets

CMC Markets Insider Transactions Over The Last Year

Notably, that recent sale by David Fineberg is the biggest insider sale of CMC Markets shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£4.22. 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. It is worth noting that this sale was only 45% of David Fineberg's holding.

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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does CMC Markets Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CMC Markets insiders own 60% of the company, currently worth about UK£710m 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.

So What Does This Data Suggest About CMC Markets Insiders?

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 since CMC Markets is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To help with this, we've discovered 4 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in CMC Markets.

But note: CMC Markets 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, 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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