ConvaTec Group Insider Lowered Holding By 35% During Last Year

Looking at ConvaTec Group PLC's (LON:CTEC ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At ConvaTec Group

The CEO & Director (Leave Of Absence), Karim Bitar, made the biggest insider sale in the last 12 months. That single transaction was for UK£2.8m worth of shares at a price of UK£2.26 each. That means that even when the share price was below the current price of UK£2.49, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 35% of Karim Bitar's stake. Karim Bitar was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for ConvaTec Group

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Insiders At ConvaTec Group Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at ConvaTec Group. In that time, CEO & Director (Leave Of Absence) Karim Bitar dumped UK£2.8m worth of shares. On the flip side, Interim CEO & Director Jonathan Mason spent UK£117k on purchasing shares (as mentioned above) . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Does ConvaTec Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.1% of ConvaTec Group shares, worth about UK£7.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About ConvaTec Group Insiders?

The stark truth for ConvaTec Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since ConvaTec Group is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ConvaTec Group. In terms of investment risks, we've identified 2 warning signs with ConvaTec Group and understanding these should be part of your investment process.

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 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.