Selling UK£2.8m Of Stock Was Lucrative Decision For Creightons Insiders

While Creightons Plc (LON:CRL) shareholders have enjoyed a good week with stock up 18%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell UK£2.8m worth of stock in the last year, which could indicate some expected downturn.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Creightons

In the last twelve months, the biggest single sale by an insider was when the insider, William Mcilroy, sold UK£2.8m worth of shares at a price of UK£0.26 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£0.35. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 66% of William Mcilroy's stake. The only individual insider seller over the last year was William Mcilroy.

Happily, we note that in the last year insiders paid UK£35k for 117.95k shares. On the other hand they divested 10.75m shares, for UK£2.8m. 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!

See our latest analysis for Creightons

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Insiders At Creightons Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Creightons. Independent Non-Executive Director Paul Watts bought UK£32k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Creightons insiders own 26% of the company, worth about UK£6.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Creightons Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Our analysis of Creightons insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Creightons (including 1 which is a bit concerning).

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.