This Insider Has Just Sold Shares In ScS Group plc (LON:SCS)

Anyone interested in ScS Group plc (LON:SCS) should probably be aware that the Logistics Director, Gary Kemp, recently divested UK£75k worth of shares in the company, at an average price of UK£2.08 each. That sale was 23% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for ScS Group

ScS Group Insider Transactions Over The Last Year

In fact, the recent sale by Gary Kemp was the biggest sale of ScS Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of UK£2.07. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 of ScS Group

Many investors like to check how much of a company is owned by 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. Our data indicates that ScS Group insiders own about UK£4.1m worth of shares (which is 5.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About ScS Group Insiders?

An insider hasn't bought ScS Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. While we like knowing 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 1 warning sign for ScS Group that deserve your attention before buying any shares.

But note: ScS 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, but not derivative transactions.

When trading ScS Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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