Beach Group plc (LON:OTB)’s market cap falls to £340m but insiders who sold £783,000 of its shares hedged their losses

Insiders UK sold £783,000 last year On the Beach Group plc (LON:OTB) at an average price of £229 per share, giving it the best bang for its buck. After the share price fell 10% last week, the company’s market value fell by £39 million, but insiders were able to cut their losses.

While we don’t believe that stockholders should simply follow insider transactions, logically you should pay attention to whether insiders are buying or selling stock.

Check out our latest analysis for the On the Beach Group

The last 12 months of insider transactions at On the Beach Group

The biggest single sale by an insider in the last 12 months was when Chief Supply Officer William Allen sold £277,000 of shares at £229 per share. While insider selling is negative, it is even more negative for us when the shares are sold at a lower price. The silver lining is that this sell-off took place above the last price (£2.05). So it may not tell us anything about how insiders feel about the current stock price.

Fortunately, we find that insiders paid £190,000 for 57.45,000 shares last year. On the other hand, they sold 3.43,000 shares for £783,000. All told, insiders sold more shares of On the Beach Group than they bought over the past year. The chart below shows insider transactions (of companies and individuals) over the last year. If you want to know exactly who sold how much and when, just click on the graphic below!

LSE:OTB Insider Trading Volume May 26, 2022

For those who like to find win investments This free List of growing companies with recent insider purchases might be just the ticket.

Does On the Beach Group have high insider ownership?

Another way to test the consistency between a company’s executives and other shareholders is to look at how many shares they own. A high proportion of insiders often means that the company management takes the interests of the shareholders more into account. On the Beach Group insiders own shares worth around £17 million. This corresponds to 5.0% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to indicate an alignment between insiders and the other shareholders.

So what does this data say about the On the Beach Group insiders?

There have been no insider transactions in the past three months — not saying much. Still, insider transactions at On the Beach Group over the past 12 months are not very encouraging. But it’s good to see insiders own shares in the company. So while it’s helpful to know what insiders are doing in relation to the purchase or sale, it’s also helpful to know the risks a particular company faces. Case in point: We discovered it 3 warning signs for On the Beach Group you should be aware of this.

Naturally On the Beach Group might not be the best stock to buy. You might want to see this free Collection of high quality companies.

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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