Trade Alert: The Medical Director Of Medica Group Plc (LON:MGP), Stephen Davies, Has Sold Some Shares Recently

Some Medica Group Plc (LON:MGP) shareholders may be a little concerned to see that the Medical Director, Stephen Davies, recently sold a substantial UK£1.3m worth of stock at a price of UK£1.20 per share. That diminished their holding by a very significant 65%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Medica Group

Medica Group Insider Transactions Over The Last Year

Notably, that recent sale by Stephen Davies is the biggest insider sale of Medica Group shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of UK£1.19. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 328.17k shares worth UK£346k. But they sold 1.08m shares for UK£1.3m. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Medica Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Medica Group insiders own 3.2% of the company, worth about UK£4.2m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Medica Group Insider Transactions Indicate?

The stark truth for Medica Group is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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! 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. You'd be interested to know, that we found 2 warning signs for Medica Group and we suggest you have a look.

But note: Medica 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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