Have Insiders Sold Georgia Capital Shares Recently?

Some Georgia Capital PLC (LON:CGEO) shareholders may be a little concerned to see that the Chairman, Irakli Gilauri, recently sold a substantial UK£4.1m worth of stock at a price of UK£30.00 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 5.1%.

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Georgia Capital Insider Transactions Over The Last Year

In fact, the recent sale by Chairman Irakli Gilauri was not their only sale of Georgia Capital shares this year. They previously made an even bigger sale of -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£30.40. 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. 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.

Happily, we note that in the last year insiders paid UK£249k for 14.36k shares. But insiders sold 809.31k shares worth UK£19m. Over the last year we saw more insider selling of Georgia Capital shares, than buying. 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!

Check out our latest analysis for Georgia Capital

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Georgia Capital insiders own 9.6% of the company, currently worth about UK£89m 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.

So What Do The Georgia Capital Insider Transactions Indicate?

Insiders sold Georgia Capital shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Georgia Capital makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 2 warning signs for Georgia Capital 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.