Have Record Insiders Been Selling Stock?

We note that a Record plc (LON:REC) insider, Shaesta Wahedally, recently sold UK£64k worth of stock for UK£0.64 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.

View our latest analysis for Record

Record Insider Transactions Over The Last Year

The Independent Non-Executive Chairman David Morrison made the biggest insider purchase in the last 12 months. That single transaction was for UK£250k worth of shares at a price of UK£0.63 each. That means that an insider was happy to buy shares at around the current price of UK£0.63. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Record insider decided to buy shares at close to current prices. David Morrison was the only individual insider to buy during the last year.

All up, insiders sold more shares in Record than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Record 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.

Insider Ownership Of Record

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Record insiders own 36% of the company, worth about UK£44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Record Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in Record, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Record. While conducting our analysis, we found that Record has 1 warning sign and it would be unwise to ignore this.

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.