Windar Photonics Insider Stock Sales Prove Timely As Market Valuation Descends To UK£47m

Insiders seem to have made the most of their holdings by selling €80k worth of Windar Photonics PLC (LON:WPHO) stock at an average sell price of €0.41 during the past year. After the stock price dropped 16% last week, the company's market value declined by UK£9.2m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Windar Photonics Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Chairman, David Lis, sold UK£40k worth of shares at a price of UK£0.42 per share. That means that even when the share price was below the current price of UK£0.48, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 4.5% of David Lis's holding. The only individual insider seller over the last year was David Lis. Notably David Lis was also the biggest buyer, having purchased UK£80k worth of shares.

David Lis divested 193.09k shares over the last 12 months at an average price of €0.41. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Windar Photonics

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Have Windar Photonics Insiders Traded Recently?

We saw insider selling worth UK£40k in the last three months. But that was only a smidgen more than the UK£40k worth of buying. Ultimately the overall selling isn't enough to tell us much.

Does Windar Photonics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. From our data, it seems that Windar Photonics insiders own 13% of the company, worth about UK£6.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Windar Photonics Insider Transactions Indicate?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at Windar Photonics. And we're not picking up on high enough insider ownership to give us any comfort. 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. Case in point: We've spotted 4 warning signs for Windar Photonics you should be aware of.

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 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.