Have GRC International Group plc (LON:GRC) Insiders Been Selling Their Stock?

Anyone interested in GRC International Group plc (LON:GRC) should probably be aware that the Executive Director, Stephen Watkins, recently divested UK£171k worth of shares in the company, at an average price of UK£0.21 each. That sale was 18% of their holding, so it does make us raise an eyebrow.

View our latest analysis for GRC International Group

GRC International Group Insider Transactions Over The Last Year

Notably, that recent sale by Stephen Watkins is the biggest insider sale of GRC International Group shares that we've seen in the last year. That means that even when the share price was below the current price of UK£0.23, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 18% of Stephen Watkins's holding.

In the last year GRC International Group insiders didn't buy any company stock. 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).

Does GRC International Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. GRC International Group insiders own 59% of the company, currently worth about UK£13m 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 Do The GRC International Group Insider Transactions Indicate?

An insider sold GRC International Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GRC International Group. Be aware that GRC International Group is showing 5 warning signs in our investment analysis, and 3 of those are concerning...

But note: GRC International 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 GRC International 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.