Should You Review Recent Insider Transactions At Ten Lifestyle Group Plc (LON:TENG)?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Ten Lifestyle Group Plc (LON:TENG).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Ten Lifestyle Group

The Last 12 Months Of Insider Transactions At Ten Lifestyle Group

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Andrew Long, sold UK£1.2m worth of shares at a price of UK£1.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.83. So it is hard to draw any strong conclusion from it. Notably Andrew Long was also the biggest buyer, having purchased UK£152k worth of shares.

In the last twelve months insiders purchased 234.13k shares for UK£152k. On the other hand they divested 1.80m shares, for UK£2.2m. In total, Ten Lifestyle Group insiders sold more than they bought over the last year. The average sell price was around UK£1.20. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (UK£0.83), so it probably doesn't tell us a lot about the value on offer today. 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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Does Ten Lifestyle Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Ten Lifestyle Group insiders own about UK£18m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Ten Lifestyle Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Ten Lifestyle Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ten Lifestyle Group. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Ten Lifestyle Group.

Of course Ten Lifestyle Group 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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