Have Softcat plc (LON:SCT) Insiders Been Selling Their Stock?

We wouldn't blame Softcat plc (LON:SCT) shareholders if they were a little worried about the fact that Martin Hellawell, the Non-Executive Chairman recently netted about UK£15m selling shares at an average price of UK£15.20. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Softcat

The Last 12 Months Of Insider Transactions At Softcat

In fact, the recent sale by Martin Hellawell was the biggest sale of Softcat shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of UK£15.03. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Softcat insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. Softcat insiders own about UK£1.2b worth of shares (which is 39% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Softcat Tell Us?

An insider sold Softcat shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Softcat is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To that end, you should learn about the 3 warning signs we've spotted with Softcat (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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