CEO & Executive Director Of Haleon Sold 34% Of Their Shares

Some Haleon plc (LON:HLN) shareholders may be a little concerned to see that the CEO & Executive Director, Brian McNamara, recently sold a substantial UK£2.9m worth of stock at a price of UK£3.87 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Haleon

The Last 12 Months Of Insider Transactions At Haleon

In fact, the recent sale by Brian McNamara was the biggest sale of Haleon shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£3.94. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 34% of Brian McNamara's holding.

Haleon insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

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).

Does Haleon Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Haleon insiders own about UK£8.9m worth of shares. That equates to 0.03% of the company. 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 Does This Data Suggest About Haleon Insiders?

Insiders sold Haleon shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Haleon 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 Haleon. Every company has risks, and we've spotted 2 warning signs for Haleon you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.