This Insider Has Just Sold Shares In Funding Circle Holdings

We wouldn't blame Funding Circle Holdings plc (LON:FCH) shareholders if they were a little worried about the fact that Samir Desai, the Co-Founder & Non-Executive Director recently netted about UK£5.0m selling shares at an average price of UK£1.25. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Funding Circle Holdings

The Last 12 Months Of Insider Transactions At Funding Circle Holdings

In fact, the recent sale by Samir Desai was the biggest sale of Funding Circle Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£1.33, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 24% of Samir Desai's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Funding Circle Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Funding Circle Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Funding Circle Holdings insiders own 5.8% of the company, worth about UK£25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Funding Circle Holdings Tell Us?

An insider hasn't bought Funding Circle Holdings 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. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Funding Circle Holdings. When we did our research, we found 2 warning signs for Funding Circle Holdings (1 is potentially serious!) that we believe deserve your full attention.

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 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.