Have Cerillion Insiders Been Selling Stock?

Investors may wish to note that the Chief Operating Officer of Cerillion Plc, Mark Nicholls, recently netted UK£65k from selling stock, receiving an average price of UK£13.05. However we note that the sale only shrunk their holding by 9.1%.

Check out our latest analysis for Cerillion

Cerillion Insider Transactions Over The Last Year

In fact, the recent sale by Chief Operating Officer Mark Nicholls was not their only sale of Cerillion shares this year. Earlier in the year, they fetched UK£12.19 per share in a -UK£76k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£13.05. 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. It is worth noting that this sale was only 10% of Mark Nicholls's holding.

Mark Nicholls divested 11.20k shares over the last 12 months at an average price of UK£12.57. 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Cerillion Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Cerillion insiders own about UK£118m worth of shares (which is 31% of the company). 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 Does This Data Suggest About Cerillion Insiders?

An insider hasn't bought Cerillion stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Cerillion is growing earnings. 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. For instance, we've identified 2 warning signs for Cerillion (1 makes us a bit uncomfortable) you should be aware of.

Of course Cerillion 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.

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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.