Don't Ignore The Insider Selling In Tremor International

We'd be surprised if Tremor International Ltd (LON:TRMR) shareholders haven't noticed that the CEO & Executive Director, Ofer Druker, recently sold UK£105k worth of stock at UK£2.88 per share. However, the silver lining is that the sale only reduced their total holding by 0.9%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Tremor International

The Last 12 Months Of Insider Transactions At Tremor International

In fact, the recent sale by CEO & Executive Director Ofer Druker was not their only sale of Tremor International shares this year. Earlier in the year, they fetched UK£3.44 per share in a -UK£108k sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£2.90). So it may not tell us anything about how insiders feel about the current share price.

In total, Tremor International 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Tremor International

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. Insiders own 4.8% of Tremor International shares, worth about UK£20m. 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 Tremor International Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Every company has risks, and we've spotted 1 warning sign for Tremor International you should know about.

But note: Tremor International 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. 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.