Stock Analysis

This Insider Has Just Sold Shares In Ryanair Holdings plc (ISE:RY4C)

ISE:RYA
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Some Ryanair Holdings plc (ISE:RY4C) shareholders may be a little concerned to see that the Group CEO & Executive Director, Michael O'Leary, recently sold a substantial €22m worth of stock at a price of €15.60 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.2%.

See our latest analysis for Ryanair Holdings

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The Last 12 Months Of Insider Transactions At Ryanair Holdings

In fact, the recent sale by Michael O'Leary was the biggest sale of Ryanair Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of €16.30, 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 3.2% of Michael O'Leary's holding.

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!

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ISE:RY4C Insider Trading Volume December 19th 2020

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 Ryanair Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ryanair Holdings insiders own 4.7% of the company, currently worth about €862m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Ryanair Holdings Insider Transactions Indicate?

An insider hasn't bought Ryanair Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Ryanair Holdings.

Of course Ryanair Holdings 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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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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