Insiders Who Sold Windar Photonics Made The Right Call As Market Cap Slides By UK£7.2m

By selling €80k worth of Windar Photonics PLC (LON:WPHO) stock at an average sell price of €0.41 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 12% last week, the company's market value declined by UK£7.2m, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Windar Photonics

The Non-Executive Chairman, David Lis, made the biggest insider sale in the last 12 months. That single transaction was for UK£40k worth of shares at a price of UK£0.42 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£0.54. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 4.5% of David Lis's holding. David Lis was the only individual insider to sell shares in the last twelve months. Notably David Lis was also the biggest buyer, having purchased UK£80k worth of shares.

David Lis sold a total of 193.09k shares over the year at an average price of €0.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Windar Photonics

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Insider Ownership Of Windar Photonics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Windar Photonics insiders own 12% of the company, worth about UK£6.4m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Windar Photonics Insiders?

It doesn't really mean much that no insider has traded Windar Photonics shares in the last quarter. The insider transactions at Windar Photonics are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. 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. While conducting our analysis, we found that Windar Photonics has 2 warning signs and it would be unwise to ignore them.

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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.