Have Insiders Sold Netcall Shares Recently?

We'd be surprised if Netcall plc (LON:NET) shareholders haven't noticed that the Non-Executive Director, Michael Edward Jackson, recently sold UK£198k worth of stock at UK£1.10 per share. The eyebrow raising move amounted to a reduction of 11% in their holding.

See our latest analysis for Netcall

Netcall Insider Transactions Over The Last Year

Notably, that recent sale by Non-Executive Director Michael Edward Jackson was not the only time they sold Netcall shares this year. They previously made an even bigger sale of -UK£277k worth of shares at a price of UK£0.93 per share. That means that even when the share price was below the current price of UK£1.11, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 15% of Michael Edward Jackson's holding.

Netcall insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Netcall insiders own about UK£12m worth of shares. That equates to 6.6% 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.

So What Do The Netcall Insider Transactions Indicate?

Insiders sold Netcall shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Netcall makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Netcall. Case in point: We've spotted 2 warning signs for Netcall you should be aware of.

Of course Netcall 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.