The Founder & Non-Executive Chairman of Derwent London Plc (LON:DLN), John Burns, Just Sold 37% Of Their Holding

Some Derwent London Plc (LON:DLN) shareholders may be a little concerned to see that the Founder & Non-Executive Chairman, John Burns, recently sold a substantial UK£5.4m worth of stock at a price of UK£32.89 per share. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.

Check out our latest analysis for Derwent London

The Last 12 Months Of Insider Transactions At Derwent London

Notably, that recent sale by John Burns is the biggest insider sale of Derwent London shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of UK£31.88. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Derwent London

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Derwent London insiders own 3.1% of the company, worth about UK£113m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Derwent London Insider Transactions Indicate?

An insider hasn't bought Derwent London stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Derwent London. You'd be interested to know, that we found 5 warning signs for Derwent London and we suggest you have a look.

Of course Derwent London 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, but not derivative transactions.

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