Don't Ignore The Insider Selling In Big Technologies

We'd be surprised if Big Technologies PLC (LON:BIG) shareholders haven't noticed that the COO & Executive Director, Charles Lewinton, recently sold UK£319k worth of stock at UK£1.24 per share. The eyebrow raising move amounted to a reduction of 21% in their holding.

See our latest analysis for Big Technologies

Big Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Charles Lewinton is the biggest insider sale of Big Technologies shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of UK£1.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 545.00k shares worth UK£690k. On the other hand they divested 745.55k shares, for UK£858k. Over the last year we saw more insider selling of Big Technologies shares, than buying. The average sell price was around UK£1.15. We don't gain confidence from insider selling near the recent share price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Big Technologies

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. It's great to see that Big Technologies insiders own 28% of the company, worth about UK£96m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Big Technologies Insiders?

The stark truth for Big Technologies is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. In terms of investment risks, we've identified 2 warning signs with Big Technologies and understanding them should be part of your investment process.

But note: Big Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.