Don't Ignore The Insider Selling In XPS Pensions Group

Anyone interested in XPS Pensions Group plc (LON:XPS) should probably be aware that the CFO & Executive Director, Snehal Shah, recently divested UK£224k worth of shares in the company, at an average price of UK£3.35 each. The eyebrow raising move amounted to a reduction of 24% in their holding.

View our latest analysis for XPS Pensions Group

XPS Pensions Group Insider Transactions Over The Last Year

The Co-CEO & Director, Ben Bramhall, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.6m worth of shares at a price of UK£3.15 each. That means that an insider was selling shares at slightly below the current price (UK£3.63). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 51% of Ben Bramhall's stake.

XPS Pensions Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of XPS Pensions Group shares, worth about UK£4.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The XPS Pensions Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since XPS Pensions Group is profitable and growing, we're not too worried by this. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for XPS Pensions Group you should be aware of, and 1 of these is significant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.