Bank of Ireland Group Repeat Insider Selling Not A Positive Indicator

A number of Bank of Ireland Group plc (ISE:BIRG) insiders sold their shares in the last year, which may have raised concerns among investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Bank of Ireland Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Group CEO & Executive Director, Myles O'Grady, for €56k worth of shares, at about €11.01 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of €13.65. 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. 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 only 20% of Myles O'Grady's holding.

Bank of Ireland Group insiders didn't buy any shares over the last year. 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!

Check out our latest analysis for Bank of Ireland Group

I will like Bank of Ireland Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Bank of Ireland Group insiders own 0.03% of the company, worth about €4.2m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Bank of Ireland Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Bank of Ireland Group insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank of Ireland Group. In terms of investment risks, we've identified 1 warning sign with Bank of Ireland Group and understanding it should be part of your investment process.

Of course Bank of Ireland Group 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 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.