IG Group Holdings plc (LON:IGG) Insiders Have Been Selling

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell IG Group Holdings plc (LON:IGG), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for IG Group Holdings

The Last 12 Months Of Insider Transactions At IG Group Holdings

The CEO & Executive Director, June Felix, made the biggest insider sale in the last 12 months. That single transaction was for UK£253k worth of shares at a price of UK£7.35 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£8.72. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 8.9% of June Felix's stake. June Felix was the only individual insider to sell shares in the last twelve months. Notably June Felix was also the biggest buyer, having purchased UK£46k worth of shares.

June Felix divested 34.35k shares over the last 12 months at an average price of UK£7.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 IG Group Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, IG Group Holdings insiders have about 0.09% of the stock, worth approximately UK£3.0m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At IG Group Holdings Tell Us?

The fact that there have been no IG Group Holdings insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by IG Group Holdings insiders. And usually insiders own more stock in the company, according to our data. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for IG Group Holdings you should know about.

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, 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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