Have Insiders Sold Georgia Capital Shares Recently?

Some Georgia Capital PLC (LON:CGEO) shareholders may be a little concerned to see that the CFO & Deputy CEO, Giorgi Alpaidze, recently sold a substantial UK£831k worth of stock at a price of UK£29.39 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.5%.

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The Last 12 Months Of Insider Transactions At Georgia Capital

In the last twelve months, the biggest single sale by an insider was when the Chairman, Irakli Gilauri, sold UK£4.5m worth of shares at a price of UK£24.24 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£29.80. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 6.2% of Irakli Gilauri's holding.

In the last twelve months insiders purchased 14.36k shares for UK£249k. On the other hand they divested 674.31k shares, for UK£15m. All up, insiders sold more shares in Georgia Capital than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Georgia Capital

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Insider Ownership Of Georgia Capital

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. We usually like to see fairly high levels of insider ownership. Georgia Capital insiders own 9.1% of the company, currently worth about UK£84m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Georgia Capital Tell Us?

An insider sold Georgia Capital shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Georgia Capital makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Case in point: We've spotted 2 warning signs for Georgia Capital you should be aware of.

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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.