We wouldn't blame Barclays PLC (LON:BARC) shareholders if they were a little worried about the fact that Angela Cross, the Group Finance Director & Executive Director recently netted about UK£2.4m selling shares at an average price of UK£5.21. That sale reduced their total holding by 44% which is hardly insignificant, but far from the worst we've seen.
Barclays Insider Transactions Over The Last Year
Notably, that recent sale by Group Finance Director & Executive Director Angela Cross was not the only time they sold Barclays shares this year. Earlier in the year, they fetched UK£3.73 per share in a -UK£2.8m sale. That means that even when the share price was below the current price of UK£5.16, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 52% of Angela Cross's holding.
Happily, we note that in the last year insiders paid UK£137k for 27.50k shares. But they sold 1.22m shares for UK£5.2m. Angela Cross divested 1.22m shares over the last 12 months at an average price of UK£4.29. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Barclays
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Does Barclays Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.07% of Barclays shares, worth about UK£50m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Barclays Insiders?
The stark truth for Barclays is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Barclays makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of 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. Every company has risks, and we've spotted 1 warning sign for Barclays you should know about.
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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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.