How Much Are SkinBioTherapeutics Plc (LON:SBTX) Insiders Taking Off The Table?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell SkinBioTherapeutics Plc (LON:SBTX), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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 SkinBioTherapeutics

The Last 12 Months Of Insider Transactions At SkinBioTherapeutics

Over the last year, we can see that the biggest insider sale was by the CFO, Company Secretary & Executive Director, Douglas Quinn, for UK£4.1m worth of shares, at about UK£16.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£0.42. So it may not tell us anything about how insiders feel about the current share price. Douglas Quinn was the only individual insider to sell shares in the last twelve months. Notably Douglas Quinn was also the biggest buyer, having purchased UK£4.0m worth of shares.

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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at SkinBioTherapeutics Have Sold Stock Recently

We've seen more insider selling than insider buying at SkinBioTherapeutics recently. We note CFO, Company Secretary & Executive Director Douglas Quinn cashed in UK£4.1m worth of shares. On the flip side, CFO, Company Secretary & Executive Director Douglas Quinn spent UK£4.0m on purchasing shares (as mentioned above) . We don't view these transactions as a positive sign.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that SkinBioTherapeutics insiders own 6.1% of the company, worth about UK£3.9m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About SkinBioTherapeutics Insiders?

The stark truth for SkinBioTherapeutics is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for SkinBioTherapeutics you should be aware of, and 1 of these is a bit unpleasant.

But note: SkinBioTherapeutics 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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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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