Creightons Non-Executive Director William Mcilroy Sells 66% Of Holding

We wouldn't blame Creightons Plc (LON:CRL) shareholders if they were a little worried about the fact that William Mcilroy, the Non-Executive Director recently netted about UK£2.8m selling shares at an average price of UK£0.26. Probably the most concerning element of the whole transaction is that the disposal amounted to 66% of their entire holding.

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The Last 12 Months Of Insider Transactions At Creightons

In fact, the recent sale by William Mcilroy was the biggest sale of Creightons shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of UK£0.27, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 66% of William Mcilroy's holding.

Happily, we note that in the last year insiders paid UK£30k for 106.00k shares. But they sold 10.87m shares for UK£2.8m. All up, insiders sold more shares in Creightons 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 Creightons

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Creightons insiders own 25% of the company, worth about UK£4.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Creightons Insiders?

An insider hasn't bought Creightons stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Creightons. For instance, we've identified 4 warning signs for Creightons (1 shouldn't be ignored) you should be aware of.

But note: Creightons 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