This Insider Has Just Sold Shares In Braemar

We'd be surprised if Braemar Plc (LON:BMS) shareholders haven't noticed that the Group CEO & Executive Director, James Christopher Gundy, recently sold UK£240k worth of stock at UK£3.00 per share. However, the silver lining is that the sale only reduced their total holding by 8.4%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Braemar

The Last 12 Months Of Insider Transactions At Braemar

Notably, that recent sale by Group CEO & Executive Director James Christopher Gundy was not the only time they sold Braemar shares this year. Earlier in the year, they fetched UK£2.76 per share in a -UK£1.1m sale. That means that even when the share price was below the current price of UK£3.07, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 34% of James Christopher Gundy's holding.

Over the last year we saw more insider selling of Braemar shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Braemar Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.2% of Braemar shares, worth about UK£7.7m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Braemar Insiders?

The insider sales have outweighed the insider buying, at Braemar, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly 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. For example - Braemar has 4 warning signs we think you should be aware of.

But note: Braemar 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com