Insiders Sold Chapel Down Group Prematurely At UK£0.71 With Stock Trading Higher

Even though Chapel Down Group Plc (LON:CDGP) has fallen by 11% over the past week , insiders who sold UK£156k worth of stock over the past year have had less luck. The average selling price of UK£0.71 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Chapel Down Group Insider Transactions Over The Last Year

The insider, Frazer Thompson, made the biggest insider sale in the last 12 months. That single transaction was for UK£76k worth of shares at a price of UK£0.76 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.36. So it may not shed much light on insider confidence at current levels.

Insiders in Chapel Down Group didn't buy any shares in the last year. 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 Chapel Down Group

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Insider Ownership Of Chapel Down Group

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. It appears that Chapel Down Group insiders own 25% of the company, worth about UK£16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Chapel Down Group Tell Us?

The fact that there have been no Chapel Down Group insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Chapel Down Group insiders. 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. At Simply Wall St, we've found that Chapel Down Group has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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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.