Don't Ignore The Fact That This Insider Just Sold Some Shares In RIT Capital Partners plc (LON:RCP)

Some RIT Capital Partners plc (LON:RCP) shareholders may be a little concerned to see that the Non-Independent Non-Executive Director, Hannah Rothschild, recently sold a substantial UK£1m worth of stock at a price of UK£19.61 per share. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

Check out our latest analysis for RIT Capital Partners

RIT Capital Partners Insider Transactions Over The Last Year

In fact, the recent sale by Hannah Rothschild was the biggest sale of RIT Capital Partners shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of UK£19.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of RIT Capital Partners

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that RIT Capital Partners insiders own 5.0% of the company, worth about UK£155m. 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 Does This Data Suggest About RIT Capital Partners Insiders?

Unfortunately, there has been more insider selling of RIT Capital Partners stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, RIT Capital Partners has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

But note: RIT Capital Partners may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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