As Experian plc (LON:EXPN)’s market cap fell by £886 million, insiders who sold $3.5 million in shares were able to recoup their losses

insiders at Experian plc (LON:EXPN) sold $3.5 million of shares at an average price of $32.48 per share last year, making the most of its investment. The company’s market valuation fell by £886m after the share price fell 3.3% last week, but insiders were spared painful losses.

While insider transactions aren’t the most important thing when it comes to long-term investing, logically you should pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Experian

The last 12 months of insider trading at Experian

In the last 12 months, the biggest single sale by an insider was the sale of £1.9m of shares at £32.46 per share by COO and Executive Director Kerry Williams. While insider selling is negative, it is even more negative for us when the shares are sold at a lower price. The good news is that this big sale was well above the current price of £28.28. So it may not tell us anything about how insiders feel about the current stock price.

Overall, Experian Insiders sold more than they bought over the past year. You can see insider transactions (of companies and individuals) over the past year in the chart below. If you want to know exactly who sold how much and when, just click on the graphic below!

LSE:EXPN insider trading volume as of February 19, 2022

If you like buying stocks that insiders buy instead of selling, then you might love this for free List of companies. (Hint: Insiders bought them).

Insider Property

I like to look at how many shares insiders own in a company to support my opinion on how well they match insiders. A high proportion of insiders often means that the company management takes the interests of the shareholders more into account. It appears Experian insiders own 0.2% of the company, valued at around £50m. While that’s a strong but not stellar level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What could insider transactions at Experian tell us?

We certainly don’t mind the lack of Experian insider trading of late. Our analysis of Experian’s insider transactions leaves us cautious. But we like the fact that insiders own a good chunk of the company. While we like to know what’s going on with the insider’s ownership and transactions, we also consider the risks a stock faces before making an investment decision. To help with that, we discovered 2 warning signs that you should take a look around to get a better idea of ​​Experian.

If you’d prefer to look at another company — one with potentially superior financials — then don’t miss it for free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

About Nina Snider

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