Ascential CFO & Director Amanda Gradden Sells 67% Of Holding

We wouldn't blame Ascential plc (LON:ASCL) shareholders if they were a little worried about the fact that Amanda Gradden, the CFO & Director recently netted about UK£2.4m selling shares at an average price of UK£2.88. That diminished their holding by a very significant 67%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Ascential

Ascential Insider Transactions Over The Last Year

Notably, that recent sale by Amanda Gradden is the biggest insider sale of Ascential shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£2.92. 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. 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 67% of Amanda Gradden's holding.

Over the last year we saw more insider selling of Ascential shares, than buying. 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!

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

Does Ascential Boast High Insider Ownership?

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 2.1% of Ascential shares, worth about UK£27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Ascential Insider Transactions Indicate?

Insiders sold Ascential shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ascential. Case in point: We've spotted 1 warning sign for Ascential you should be aware of.

Of course Ascential 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 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.