Sareum Holdings Drops To UK£0.27, Yet Insiders May Have Sold Too Early

Sareum Holdings plc's (LON:SAR) value has fallen 10% in the last week, but insiders who sold UK£70k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of UK£0.57 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Sareum Holdings

The Last 12 Months Of Insider Transactions At Sareum Holdings

The Founder & Executive Director, Timothy Mitchell, made the biggest insider sale in the last 12 months. That single transaction was for UK£41k worth of shares at a price of UK£0.57 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£0.27. So it is hard to draw any strong conclusion from it.

Insiders in Sareum Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Sareum Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£809k worth of Sareum Holdings stock, about 2.8% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Sareum Holdings Tell Us?

It doesn't really mean much that no insider has traded Sareum Holdings shares in the last quarter. We don't take much encouragement from the transactions by Sareum Holdings insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sareum Holdings. Case in point: We've spotted 5 warning signs for Sareum Holdings you should be aware of, and 4 of these make us uncomfortable.

Of course Sareum Holdings 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.