We wouldn't blame Lloyds Banking Group plc (LON:LLOY) shareholders if they were a little worried about the fact that Vimlesh Maru, a company insider, recently netted about UK£490k selling shares at an average price of UK£0.54. That's a big dump, and it decreased their holding size by 15%, which is notable but not too bad.
Lloyds Banking Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Group Chief Executive & Executive Director, António de Sousa Horta-Osório, for UK£3.6m worth of shares, at about UK£0.53 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£0.53. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 24% of António de Sousa Horta-Osório's holding.
Happily, we note that in the last year insiders paid UK£557k for 976231 shares. On the other hand they divested 15334265 shares, for UK£8.5m. Over the last year we saw more insider selling of Lloyds Banking Group shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership of Lloyds Banking Group
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. It appears that Lloyds Banking Group insiders own 0.1% of the company, worth about UK£43m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Lloyds Banking Group Insiders?
The stark truth for Lloyds Banking Group is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Lloyds Banking Group.
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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, but not derivative transactions.
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