With ASOS Plc (LON:ASC) down 4.3% this week, insiders may find some solace after selling £1.5m worth of shares earlier this year.

Insiders sold £1.5m worth of British pounds last year ASOS Plc (LON:ASC) at an average price of £51.00 per share, allowing them to get the most for their money. The company’s market cap plunged £101 million after the price fell 4.3% last week, but insiders have been able to limit their loss to some extent.

While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would think it foolish to ignore insider transactions entirely.

Check out our latest analysis for ASOS

ASOS insider transactions over the past year

The insider, Nicholas Beighton, made the biggest insider sale in the last 12 months. This single transaction involved shares worth £1.5m at £51.00 each. While we don’t typically like to see insider sales, it’s more concerning when the sales happen at a lower price. The silver lining is that this sell-off happened above the last price (£22.37). As such, it may not shed much light on insider confidence at current levels. Nicholas Beighton was the only single insider to sell in the last year.

Insiders have bought 13,18,000 shares for £366,000 over the last 12 months. But they sold 29.56,000 shares for £1.5 million. You can see insider transactions (of companies and individuals) over the past year in the chart below. By clicking on the graphic below you can see the exact details of each insider transaction!

AIM:ASC insider trading volume as of January 23, 2022

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

Insider Property

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. I think it’s a good sign when insiders own a significant number of shares in the company. ASOS insiders own around £76m worth of shares (that’s 3.4% of the company). Most shareholders would appreciate this type of insider ownership, as it suggests that management’s incentives are well-aligned with other shareholders.

So what do the ASOS Insider Transactions show?

There have been no insider transactions in the past three months — not saying much. Our analysis of ASOS’ insider transactions leaves us cautious. The modest level of insider ownership is at least some consolation. 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. Every business has risks and we have recognized them 1 warning label for ASOS you should know.

sure, You might find a fantastic investment by looking elsewhere. So check this out for 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.

About Nina Snider

Check Also

Is WH Smith PLC (LON:SMWH)’s 17% ROE Better than Average?

Many investors are still learning about the various metrics that can be useful when analyzing …