Trade Alert: The Group Chief Executive & Executive Director Of Hill & Smith Holdings PLC (LON:HILS), Derek Muir, Has Sold Some Shares Recently

Some Hill & Smith Holdings PLC (LON:HILS) shareholders may be a little concerned to see that the Group Chief Executive & Executive Director, Derek Muir, recently sold a substantial UK£2.0m worth of stock at a price of UK£13.43 per share. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Hill & Smith Holdings

Hill & Smith Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Derek Muir is the biggest insider sale of Hill & Smith Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of UK£12.32. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

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. Insiders own 0.5% of Hill & Smith Holdings shares, worth about UK£4.7m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Hill & Smith Holdings Insiders?

The insider sales have outweighed the insider buying, at Hill & Smith Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Hill & Smith Holdings is growing earnings. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. 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. Case in point: We've spotted 3 warning signs for Hill & Smith Holdings you should be aware of.

Of course Hill & Smith Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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