Insider Sellers Might Regret Selling Public Policy Holding Company Shares at a Lower Price Than Current Market Value
Even though Public Policy Holding Company, Inc. (LON:PPHC) has fallen by 10% over the past week , insiders who sold US$1.5m worth of stock over the past year have had less luck. The average selling price of US$8.77 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Public Policy Holding Company
In the last twelve months, the biggest single sale by an insider was when the Chief Client Officer, Johnson Green, sold UK£543k worth of shares at a price of UK£8.90 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£7.23). So it is hard to draw any strong conclusion from it.
In total, Public Policy Holding Company insiders sold more than they bought over the last year. 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!
Check out our latest analysis for Public Policy Holding Company
I will like Public Policy Holding Company better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Public Policy Holding Company Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Public Policy Holding Company shares. In total, insiders dumped UK£71k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Public Policy Holding Company
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Public Policy Holding Company insiders own 44% of the company, currently worth about UK£96m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Public Policy Holding Company Tell Us?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Public Policy Holding Company has 3 warning signs we think you should be aware of.
Of course Public Policy Holding Company may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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