Have Insiders Sold AO World Shares Recently?

Some AO World plc (LON:AO.) shareholders may be a little concerned to see that the Founder, John Roberts, recently sold a substantial UK£401k worth of stock at a price of UK£0.97 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.4%.

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AO World Insider Transactions Over The Last Year

In fact, the recent sale by Founder John Roberts was not their only sale of AO World shares this year. They previously made an even bigger sale of -UK£1.9m worth of shares at a price of UK£0.97 per share. That means that even when the share price was below the current price of UK£1.06, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 2.1% of John Roberts's stake.

All up, insiders sold more shares in AO World than they bought, over the last year. 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!

See our latest analysis for AO World

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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. We usually like to see fairly high levels of insider ownership. AO World insiders own 20% of the company, currently worth about UK£122m based on the recent share price. 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 AO World Insider Transactions Indicate?

Unfortunately, there has been more insider selling of AO World stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for AO World you should be aware of.

But note: AO World may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.