Have Netcall Insiders Been Selling Stock?

Anyone interested in Netcall plc (LON:NET) should probably be aware that the Non-Executive Director, Michael Edward Jackson, recently divested UK£347k worth of shares in the company, at an average price of UK£1.16 each. That sale was 22% of their holding, so it does make us raise an eyebrow.

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Netcall Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, Henrik Bang, for UK£1.9m worth of shares, at about UK£1.11 per share. That means that an insider was selling shares at slightly below the current price (UK£1.17). 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 28% of Henrik Bang's holding.

Happily, we note that in the last year insiders paid UK£115k for 109.78k shares. But they sold 2.53m shares for UK£2.7m. Over the last year we saw more insider selling of Netcall shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Netcall

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Does Netcall Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Netcall insiders own 5.5% of the company, worth about UK£11m. 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 Netcall Tell Us?

The insider sales have outweighed the insider buying, at Netcall, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Netcall you should be aware of.

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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.