Gavin Hill Is The Group Finance Director & Executive Director of Oxford Instruments plc (LON:OXIG) And They Just Sold 90% Of Their Shares

Anyone interested in Oxford Instruments plc (LON:OXIG) should probably be aware that the Group Finance Director & Executive Director, Gavin Hill, recently divested UK£108k worth of shares in the company, at an average price of UK£19.65 each. In particular, we note that the sale equated to a 90% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Oxford Instruments

Oxford Instruments Insider Transactions Over The Last Year

Notably, that recent sale by Gavin Hill is the biggest insider sale of Oxford Instruments shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of UK£18.82. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.3% of Oxford Instruments shares, worth about UK£58m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Oxford Instruments Insiders?

An insider sold Oxford Instruments shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Oxford Instruments and understanding it should be part of your investment process.

Of course Oxford Instruments 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, but not derivative transactions.

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