This Insider Has Just Sold Shares In Bloomsbury Publishing

Some Bloomsbury Publishing Plc (LON:BMY) shareholders may be a little concerned to see that the Founder, John Newton, recently sold a substantial UK£447k worth of stock at a price of UK£4.05 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 6.6%.

See our latest analysis for Bloomsbury Publishing

Bloomsbury Publishing Insider Transactions Over The Last Year

Notably, that recent sale by John Newton is the biggest insider sale of Bloomsbury Publishing shares that we've seen in the last year. That means that even when the share price was slightly below the current price of UK£4.12, 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. 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. This single sale was just 6.6% of John Newton's stake.

In total, Bloomsbury Publishing insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and 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 Of Bloomsbury Publishing

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. Bloomsbury Publishing insiders own about UK£8.0m worth of shares. That equates to 2.4% of the company. 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 Bloomsbury Publishing Insider Transactions Indicate?

Insiders haven't bought Bloomsbury Publishing stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Bloomsbury Publishing is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bloomsbury Publishing. In terms of investment risks, we've identified 2 warning signs with Bloomsbury Publishing and understanding them should be part of your investment process.

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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.