Quadrise Up 12%, But Some Insiders Miss Out

Despite the fact that Quadrise Plc (LON:QED) stock rose 12% last week, insiders who sold UK£78k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of UK£0.029, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Quadrise Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Philip Hill, sold UK£58k worth of shares at a price of UK£0.029 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£0.01. So it is hard to draw any strong conclusion from it. Philip Hill was the only individual insider to sell over the last year. Notably Philip Hill was also the biggest buyer, having purchased UK£78k worth of shares.

Philip Hill divested 2.70m shares over the last 12 months at an average price of UK£0.029. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Quadrise

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Does Quadrise Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about UK£204k worth of Quadrise shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.

So What Do The Quadrise Insider Transactions Indicate?

The fact that there have been no Quadrise insider transactions recently certainly doesn't bother us. The insider transactions at Quadrise are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. When we did our research, we found 3 warning signs for Quadrise (2 are significant!) that we believe deserve your full attention.

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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.