Have Insiders Sold NEXT Shares Recently?

We wouldn't blame NEXT plc (LON:NXT) shareholders if they were a little worried about the fact that Simon Wolfson, the CEO & Executive Director recently netted about UK£12m selling shares at an average price of UK£124. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.9%.

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NEXT Insider Transactions Over The Last Year

Notably, that recent sale by CEO & Executive Director Simon Wolfson was not the only time they sold NEXT shares this year. They previously made an even bigger sale of -UK£29m worth of shares at a price of UK£102 per share. That means that even when the share price was below the current price of UK£122, 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. 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. We note that the biggest single sale was only 21% of Simon Wolfson's holding.

In total, NEXT insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 NEXT

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Insider Ownership Of NEXT

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. NEXT insiders own 1.2% of the company, currently worth about UK£172m based on the recent share price. 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 Does This Data Suggest About NEXT Insiders?

The insider sales have outweighed the insider buying, at NEXT, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - NEXT has 1 warning sign we think you should be aware of.

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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.