Chapel Down Group's Stock Sinks To UK£0.42, But Insiders Sold Even Lower

Chapel Down Group Plc's (LON:CDGP) stock price has dropped 18% in the previous week, but insiders who sold UK£156k in stock over the past year have had less luck. Given that the average selling price of UK£0.71 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

Check out our latest analysis for Chapel Down Group

Chapel Down Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Frazer Thompson, for UK£76k worth of shares, at about UK£0.76 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.42. So it may not shed much light on insider confidence at current levels.

In the last year Chapel Down Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Chapel Down Group Have Sold Stock Recently

We have seen a bit of insider selling at Chapel Down Group, over the last three months. insider Guy Tresnan only netted UK£15k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Does Chapel Down Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Chapel Down Group insiders own 26% of the company, worth about UK£18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Chapel Down Group Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. Recent sales exacerbate our caution arising from analysis of Chapel Down Group insider transactions. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chapel Down Group. Case in point: We've spotted 2 warning signs for Chapel Down Group you should be aware of.

Of course Chapel Down 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.