PensionBee Group Insiders Made A Wise Decision By Selling UK£8.6m Worth Of Stock

Despite a 11% gain in PensionBee Group plc's (LON:PBEE) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell UK£8.6m worth of stock in the last year, which could indicate some expected downturn.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for PensionBee Group

The Last 12 Months Of Insider Transactions At PensionBee Group

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Romina Savova, for UK£6.1m worth of shares, at about UK£1.54 per share. That means that an insider was selling shares at slightly below the current price (UK£1.89). 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. We note that the biggest single sale was only 5.0% of Romina Savova's holding.

In the last year PensionBee Group insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. PensionBee Group insiders own 41% of the company, currently worth about UK£173m 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 Do The PensionBee Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded PensionBee Group shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the PensionBee Group insiders selling. Of course, the future is what matters most. So if you are interested in PensionBee Group, you should check out this free report on analyst forecasts for the company.

Of course PensionBee Group 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.