Have Insiders Sold Gear4music (Holdings) plc (LON:G4M) Shares Recently?

We wouldn't blame Gear4music (Holdings) plc (LON:G4M) shareholders if they were a little worried about the fact that Andrew Wass, the CEO & Executive Director recently netted about UK£5.9m selling shares at an average price of UK£7.30. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

View our latest analysis for Gear4music (Holdings)

The Last 12 Months Of Insider Transactions At Gear4music (Holdings)

In fact, the recent sale by Andrew Wass was the biggest sale of Gear4music (Holdings) shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of UK£7.10. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Gear4music (Holdings) insiders didn't buy any company stock. 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: insiders have been buying them).

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 36% of Gear4music (Holdings) shares, worth about UK£54m. 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 Gear4music (Holdings) Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Gear4music (Holdings) is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Gear4music (Holdings) has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Gear4music (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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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