Frasers Group Insiders Sold UK£1.2m Of Shares Suggesting Hesitancy

In the last year, many Frasers Group Plc (LON:FRAS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Frasers Group

Frasers Group Insider Transactions Over The Last Year

The insider, Michael James Ashley, made the biggest insider sale in the last 12 months. That single transaction was for UK£800k worth of shares at a price of UK£8.00 each. 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£6.05. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid UK£70k for 10.47k shares. On the other hand they divested 151.39k shares, for UK£1.2m. All up, insiders sold more shares in Frasers Group than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Frasers Group Have Bought Stock Recently

It's good to see that Frasers Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£70k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Frasers Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Frasers Group insiders own 76% of the company, worth about UK£2.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Frasers Group Insider Transactions Indicate?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Frasers Group insiders are reasonably well aligned, and optimistic for the future. While it's good to be aware of 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 found 2 warning signs for Frasers Group that deserve your attention before buying any shares.

Of course Frasers 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.