Milton Capital's Stock Sinks To UK£0.0073, But Insiders Sold Even Lower

Milton Capital Plc's (LON:MII) value has fallen 12% in the last week, but insiders who sold UK£165k worth of stock over the last year have had less success. The average selling price of UK£0.012 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Milton Capital

Milton Capital Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Director, Malcolm Burne, for UK£150k worth of shares, at about UK£0.013 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£0.0073). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid UK£111k for 9.50m shares. But they sold 14.00m shares for UK£165k. Over the last year we saw more insider selling of Milton Capital shares, than buying. 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 Milton Capital 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.

Are Milton Capital Insiders Buying Or Selling?

We saw insider selling worth UK£15k in the last three months. That's only a tiny bit more than the purchases, worth UK£11k. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Does Milton Capital 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. It's great to see that Milton Capital insiders own 45% of the company, worth about UK£327k. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Milton Capital Insider Transactions Indicate?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. While we gain confidence from high insider ownership of Milton Capital, we can't say the same about their transactions in the last year, in the absence of further purchases. While it's good to be aware of 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. To that end, you should learn about the 3 warning signs we've spotted with Milton Capital (including 2 which are a bit concerning).

Of course Milton Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.