Experian plc’s (LON:EXPN) market cap falls to £23 billion, but insiders who sold $3.5 million in shares have hedged their losses

Last year, insiders sold $3.5 million worth of shares Experian plc (LON:EXPN) at an average price of $32.48 per share, giving them the most bang for their buck. The company’s market value fell by £1.3 billion last week after the share price fell 5.3%, although insiders 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 Experian

The last 12 months of insider trading at Experian

Executive Director, Kerry Williams, made the largest insider sale in the past 12 months. This single transaction involved shares worth £1.9m at a price of £32.46 each. 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 (£25.53). As such, it may not shed much light on insider confidence at current levels.

Over the past year, we’ve seen more insider selling of Experian stock than buying. Below is a visual representation of insider transactions (both corporate and individual) over the past 12 months. 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 May 21, 2022

I’ll like Experian better when I see some big insider buys. While we wait, take a look at this free List of growing companies with significant recent insider purchases.

Does Experian have high insider ownership?

Looking at the total number of insider holdings in a company can help inform your opinion of whether they are well aligned with common shareholders. We usually like to see a fairly high level of inside ownership. Experian insiders own approximately £28 million worth of shares. This corresponds to 0.1% of the company. 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. We don’t take much encouragement from Experian Insider transactions. The modest level of insider ownership is at least some consolation. 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. You would be interested in what we found 1 Warning Sign for Experian and we encourage you to take a look.

Naturally, You might find a fantastic investment by looking elsewhere. So check this out free List of interesting 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.

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