Have Frasers Group Insiders Been Selling Stock?

We wouldn't blame Frasers Group Plc (LON:FRAS) shareholders if they were a little worried about the fact that Michael James Ashley, a company insider, recently netted about UK£800k selling shares at an average price of UK£8.00. However, that sale only accounted for 0.03% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Frasers Group

The Last 12 Months Of Insider Transactions At Frasers Group

Notably, that recent sale by Michael James Ashley is the biggest insider sale of Frasers Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£8.06. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 0.03% of Michael James Ashley's holding.

Michael James Ashley divested 150.00k shares over the last 12 months at an average price of UK£8.00. 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Frasers Group insiders own 76% of the company, currently worth about UK£2.7b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Frasers Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Frasers Group makes money, and is growing profits. 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 Frasers Group you should be aware of, and 1 of these shouldn't be ignored.

But note: Frasers Group 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.