Have Craneware Insiders Been Selling Stock?

We wouldn't blame Craneware plc (LON:CRW) shareholders if they were a little worried about the fact that Keith Neilson, the Co-Founder recently netted about UK£9.3m selling shares at an average price of UK£22.00. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Craneware

Craneware Insider Transactions Over The Last Year

Notably, that recent sale by Keith Neilson is the biggest insider sale of Craneware shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£22.30, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Keith Neilson's stake.

In total, Craneware insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Craneware 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Craneware insiders own about UK£132m worth of shares (which is 17% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Craneware Insiders?

Insiders haven't bought Craneware stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Craneware is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Craneware. In terms of investment risks, we've identified 1 warning sign with Craneware and understanding it should be part of your investment process.

Of course Craneware 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.