Warpaint London Independent Non-Executive Director Keith Sadler Sells 36% Of Holding

Anyone interested in Warpaint London PLC (LON:W7L) should probably be aware that the Independent Non-Executive Director, Keith Sadler, recently divested UK£101k worth of shares in the company, at an average price of UK£5.99 each. The eyebrow raising move amounted to a reduction of 36% in their holding.

See our latest analysis for Warpaint London

The Last 12 Months Of Insider Transactions At Warpaint London

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Samuel Bazini, sold UK£16m worth of shares at a price of UK£4.50 per share. That means that an insider was selling shares at slightly below the current price (UK£5.91). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Samuel Bazini's holding.

In total, Warpaint London 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Warpaint London

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Warpaint London insiders own about UK£190m worth of shares (which is 41% 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 Warpaint London Insiders?

Unfortunately, there has been more insider selling of Warpaint London stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Warpaint London is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. At Simply Wall St, we found 1 warning sign for Warpaint London that deserve your attention before buying any shares.

But note: Warpaint London 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com