We'd be surprised if Hotel Chocolat Group plc (LON:HOTC) shareholders haven't noticed that an insider, Matthew Margereson, recently sold UK£101k worth of stock at UK£3.95 per share. The eyebrow raising move amounted to a reduction of 10% in their holding.
The Last 12 Months Of Insider Transactions At Hotel Chocolat Group
Notably, that recent sale by Matthew Margereson is the biggest insider sale of Hotel Chocolat Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£4.00. 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 just 10% of Matthew Margereson's stake.
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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Hotel Chocolat Group
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. Hotel Chocolat Group insiders own 60% of the company, currently worth about UK£312m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Hotel Chocolat Group Insiders?
An insider hasn't bought Hotel Chocolat Group stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hotel Chocolat Group. At Simply Wall St, we found 2 warning signs for Hotel Chocolat Group that deserve your attention before buying any shares.
But note: Hotel Chocolat Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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