Trade Alert: The Chief Operating Officer Of LoopUp Group plc (LON:LOOP), Marcus Greensit, Has Sold Some Shares Recently

We'd be surprised if LoopUp Group plc (LON:LOOP) shareholders haven't noticed that the Chief Operating Officer, Marcus Greensit, recently sold UK£225k worth of stock at UK£2.25 per share. In particular, we note that the sale equated to a 64% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for LoopUp Group

The Last 12 Months Of Insider Transactions At LoopUp Group

Notably, that recent sale by Marcus Greensit is the biggest insider sale of LoopUp Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (UK£2.40). 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. We note that the biggest single sale was 64% of Marcus Greensit's holding.

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!

I will like LoopUp Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does LoopUp Group Boast High Insider Ownership?

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. LoopUp Group insiders own about UK£15m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At LoopUp Group Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, LoopUp Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing LoopUp Group. Be aware that LoopUp Group is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course LoopUp Group 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, but not derivative transactions.

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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.
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