Greencore Group plc (LON:GNC) Insiders Have Been Selling

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Greencore Group plc (LON:GNC).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Greencore Group

The Last 12 Months Of Insider Transactions At Greencore Group

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Patrick Coveney, sold UK£1.8m worth of shares at a price of UK£2.51 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (UK£1.18). So it may not shed much light on insider confidence at current levels. Patrick Coveney was the only individual insider to sell shares in the last twelve months. Notably Patrick Coveney was also the biggest buyer, having purchased UK£714k worth of shares.

Happily, we note that in the last year insiders paid UK£714k for 671.37k shares. But they sold 700.00k shares for UK£1.8m. 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!

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

Insider Ownership of Greencore Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Greencore Group insiders own about UK£6.6m worth of shares (which is 1.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Greencore Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Greencore Group shares in the last quarter. We don't take much encouragement from the transactions by Greencore Group insiders. And usually insiders own more stock in the company, according to our data. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Greencore Group has 2 warning signs (and 1 which is significant) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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