Have Everyman Media Group plc (LON:EMAN) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
May 09, 2021
AIM:EMAN
Source: Shutterstock

We'd be surprised if Everyman Media Group plc (LON:EMAN) shareholders haven't noticed that the Executive Director, Adam Kaye, recently sold UK£150k worth of stock at UK£1.50 per share. On the bright side, that sale was only 1.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Everyman Media Group

The Last 12 Months Of Insider Transactions At Everyman Media Group

Notably, that recent sale by Adam Kaye is the biggest insider sale of Everyman Media Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (UK£1.60). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 1.8% of Adam Kaye's holding.

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!

insider-trading-volume
AIM:EMAN Insider Trading Volume May 10th 2021

I will like Everyman Media Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Insiders own 24% of Everyman Media Group shares, worth about UK£35m. 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 Do The Everyman Media Group Insider Transactions Indicate?

An insider sold Everyman Media Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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 Everyman Media Group. Be aware that Everyman Media Group is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: Everyman Media Group 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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