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Have Insiders Sold CLS Holdings plc (LON:CLI) Shares Recently?

Simply Wall St

Some CLS Holdings plc (LON:CLI) shareholders may be a little concerned to see that the Non-Executive Director, Bengt Mortstedt, recently sold a whopping UK£1.3m worth of stock at a price of UK£2.59 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 1.9%.

See our latest analysis for CLS Holdings

CLS Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Bengt Mortstedt was the biggest sale of CLS Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (UK£2.64). 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. 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 1.9%of Bengt Mortstedt's holding.

You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

LSE:CLI Recent Insider Trading, October 22nd 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Insiders own 6.6% of CLS Holdings shares, worth about UK£71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CLS Holdings Tell Us?

An insider hasn't bought CLS Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, CLS Holdings makes money, and is growing profits. 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 CLS Holdings.

Of course CLS Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.