Computacenter Sees Insider Stock Selling

Looking at Computacenter plc's (LON:CCC ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Computacenter

The Last 12 Months Of Insider Transactions At Computacenter

The Group CEO & Executive Director, Mike Norris, made the biggest insider sale in the last 12 months. That single transaction was for UK£1.3m worth of shares at a price of UK£23.19 each. That means that an insider was selling shares at slightly below the current price (UK£27.76). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.8% of Mike Norris's holding. Mike Norris was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 4.00k shares for UK£90k. On the other hand they divested 55.00k shares, for UK£1.3m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Computacenter Insiders Bought Stock Recently

There was some insider buying at Computacenter over the last quarter. Senior Independent Non-Executive Director Rosalind Rivaz bought UK£30k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of Computacenter

For a common shareholder, it is worth checking how many shares are held by company 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. Computacenter insiders own 15% of the company, currently worth about UK£477m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Computacenter Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. While we gain confidence from high insider ownership of Computacenter, we can't say the same about their transactions in the last year, in the absence of further purchases. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Computacenter. Every company has risks, and we've spotted 1 warning sign for Computacenter you should know about.

Of course Computacenter 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.

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

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.