Insiders Could Have Profited By Holding onto XPS Pensions Group Shares Despite 10% Drop

XPS Pensions Group plc's (LON:XPS) stock price has dropped 10% in the previous week, but insiders who sold UK£921k in stock over the past year have had less luck. The average selling price of UK£3.78 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At XPS Pensions Group

The Co-CEO & Director, Ben Bramhall, made the biggest insider sale in the last 12 months. That single transaction was for UK£616k worth of shares at a price of UK£3.78 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£3.14. So it may not shed much light on insider confidence at current levels.

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

See our latest analysis for XPS Pensions Group

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Does XPS Pensions Group Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that XPS Pensions Group insiders own 0.8% of the company, worth about UK£5.1m. We do generally prefer see higher levels of insider ownership.

So What Do The XPS Pensions Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded XPS Pensions Group shares in the last quarter. We don't take much encouragement from the transactions by XPS Pensions Group insiders. And usually insiders own more stock in the company, according to our data. 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. You'd be interested to know, that we found 2 warning signs for XPS Pensions Group and we suggest you have a look.

Of course XPS Pensions 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.