Insider Buying: The National Express Group PLC (LON:NEX) Senior Independent Non-Executive Director Just Bought 599% More Shares

By
Simply Wall St
Published
March 21, 2021
LSE:NEX

Whilst it may not be a huge deal, we thought it was good to see that the National Express Group PLC (LON:NEX) Senior Independent Non-Executive Director, Matthew Crummack, recently bought UK£49k worth of stock, for UK£3.04 per share. Even though that isn't a massive buy, it did increase their holding by 599%, which is arguably a good sign.

See our latest analysis for National Express Group

National Express Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Dean Finch, for UK£759k worth of shares, at about UK£1.99 per share. That means that an insider was selling shares at slightly below the current price (UK£3.13). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Dean Finch's holding. Notably Dean Finch was also the biggest buyer, having purchased UK£579k worth of shares.

Happily, we note that in the last year insiders paid UK£579k for 246.64k shares. But insiders sold 699.14k shares worth UK£1.2m. Over the last year we saw more insider selling of National Express Group shares, than buying. 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!

insider-trading-volume
LSE:NEX Insider Trading Volume March 21st 2021

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).

Does National Express Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.5% of National Express Group shares, worth about UK£9.7m. 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 National Express Group Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Our analysis of National Express Group insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in National Express Group.

But note: National Express Group 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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