Insiders Who Sold Naked Wines Missed Out On 10.0% Stock Increase

Naked Wines plc's (LON:WINE) stock rose 10.0% last week, but insiders who sold UK£148k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of UK£0.86, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Naked Wines Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chair, Jack Pailing, for UK£101k worth of shares, at about UK£0.84 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 good news is that this large sale was at well above current price of UK£0.73. So it is hard to draw any strong conclusion from it. Jack Pailing was the only individual insider to sell shares in the last twelve months. Notably Jack Pailing was also the biggest buyer, having purchased UK£132k worth of shares.

Happily, we note that in the last year insiders paid UK£132k for 166.31k shares. On the other hand they divested 173.30k shares, for UK£148k. Jack Pailing ditched 173.30k shares over the year. The average price per share was UK£0.86. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Naked Wines

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Insiders At Naked Wines Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Naked Wines. Group CEO & Director Rodrigo Maza shelled out UK£7.8k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Insider Ownership Of Naked Wines

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Naked Wines insiders own 8.1% of the company, worth about UK£4.2m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Naked Wines Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. We don't take much encouragement from the transactions by Naked Wines insiders. And usually insiders own more stock in the company, according to our data. 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. To that end, you should learn about the 3 warning signs we've spotted with Naked Wines (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.