Have TPXimpact Holdings Insiders Been Selling Stock?

We wouldn't blame TPXimpact Holdings plc (LON:TPX) shareholders if they were a little worried about the fact that Neal Gandhi, the Co-Founder & Non-Executive Director recently netted about UK£504k selling shares at an average price of UK£0.42. That's a big disposal, and it decreased their holding size by 20%, which is notable but not too bad.

See our latest analysis for TPXimpact Holdings

TPXimpact Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Co-Founder & Non-Executive Director Neal Gandhi was not their only sale of TPXimpact Holdings shares this year. They previously made an even bigger sale of -UK£1.1m worth of shares at a price of UK£0.33 per share. That means that even when the share price was below the current price of UK£0.42, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 36% of Neal Gandhi's stake.

Happily, we note that in the last year insiders paid UK£97k for 249.91k shares. But they sold 4.66m shares for UK£1.6m. All up, insiders sold more shares in TPXimpact Holdings than they bought, over the last year. They sold for an average price of about UK£0.35. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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: Most of them are flying under the radar).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 21% of TPXimpact Holdings shares, worth about UK£8.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The TPXimpact Holdings Insider Transactions Indicate?

An insider hasn't bought TPXimpact Holdings stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 example - TPXimpact Holdings has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com