Insiders At Haleon Sold UK£5.8m In Stock, Alluding To Potential Weakness

In the last year, many Haleon plc (LON:HLN) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

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The Last 12 Months Of Insider Transactions At Haleon

The CEO & Executive Director, Brian McNamara, made the biggest insider sale in the last 12 months. That single transaction was for UK£2.9m worth of shares at a price of UK£3.87 each. So we know that an insider sold shares at around the present share price of UK£3.59. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 36.72k shares for UK£148k. But they sold 1.49m shares for UK£5.8m. All up, insiders sold more shares in Haleon 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!

Check out our latest analysis for Haleon

I will like Haleon better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Haleon Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Haleon. In that time, President of Asia Pacific Keith Choy dumped UK£340k worth of shares. On the other hand we note insiders bought UK£148k worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Does Haleon Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Haleon insiders own 0.05% of the company, worth about UK£17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Haleon Tell Us?

The insider sales have outweighed the insider buying, at Haleon, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Haleon makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Haleon. At Simply Wall St, we found 1 warning sign for Haleon that deserve your attention before buying any shares.

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.

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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.