Have Team17 Group Insiders Been Selling Stock?

Some Team17 Group plc (LON:TM17) shareholders may be a little concerned to see that the Non Executive Director, Deborah Bestwick, recently sold a substantial UK£6.4m worth of stock at a price of UK£2.10 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 10.0%.

View our latest analysis for Team17 Group

The Last 12 Months Of Insider Transactions At Team17 Group

In fact, the recent sale by Deborah Bestwick was the biggest sale of Team17 Group 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£2.20, an insider wanted to cash in some shares. 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 10.0% of Deborah Bestwick's holding.

Happily, we note that in the last year insiders paid UK£425k for 226.11k shares. But insiders sold 3.03m shares worth UK£6.4m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Team17 Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Team17 Group

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. We usually like to see fairly high levels of insider ownership. Insiders own 21% of Team17 Group shares, worth about UK£67m. 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 Team17 Group Insiders?

An insider sold Team17 Group shares recently, but they didn't buy any. 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. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Team17 Group you should know about.

But note: Team17 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 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.