Rathbones Group Insider Lowered Holding By 23% During Last Year

Viewing insider transactions for Rathbones Group Plc's (LON:RAT ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Rathbones Group

The Last 12 Months Of Insider Transactions At Rathbones Group

The Chief Risk Officer, Sarah Owen-Jones, made the biggest insider sale in the last 12 months. That single transaction was for UK£234k worth of shares at a price of UK£17.68 each. So what is clear is that an insider saw fit to sell at around the current price of UK£17.42. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Sarah Owen-Jones.

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!

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Insiders At Rathbones Group Have Sold Stock Recently

We've seen more insider selling than insider buying at Rathbones Group recently. We note Chief Risk Officer Sarah Owen-Jones cashed in UK£234k worth of shares. Meanwhile Independent Non-Executive Director Iain Cummings bought UK£602 worth. Generally this level of net selling might be considered a bit bearish.

Insider Ownership Of Rathbones Group

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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Rathbones Group insiders own 0.3% of the company, worth about UK£6.0m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Rathbones Group Tell Us?

The insider sales have outweighed the insider buying, at Rathbones Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. Every company has risks, and we've spotted 5 warning signs for Rathbones Group (of which 2 are concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com