Don't Ignore The Insider Selling In Raspberry Pi Holdings

Anyone interested in Raspberry Pi Holdings plc (LON:RPI) should probably be aware that the Independent Non-Executive Director, David Gammon, recently divested UK£398k worth of shares in the company, at an average price of UK£7.10 each. The eyebrow raising move amounted to a reduction of 21% in their holding.

Check out our latest analysis for Raspberry Pi Holdings

Raspberry Pi Holdings Insider Transactions Over The Last Year

Notably, that recent sale by David Gammon is the biggest insider sale of Raspberry Pi Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of UK£7.41, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 21% of David Gammon's stake.

In the last year Raspberry Pi Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Raspberry Pi Holdings Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.3% of Raspberry Pi Holdings shares, worth about UK£33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Raspberry Pi Holdings Insider Transactions Indicate?

Insiders sold Raspberry Pi Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Raspberry Pi Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raspberry Pi Holdings. When we did our research, we found 3 warning signs for Raspberry Pi Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

But note: Raspberry Pi Holdings 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.