Director dealings: what company insiders are buying and selling

Company directors usually know more about the businesses they work for than regular investors, which is why it can be a good idea to keep an eye on directors’ share deals.

An insider’s decision to buy or sell a security can be a sign that they believe the business is undervalued or overpriced, although these transactions should never be taken as gospel.

There are many reasons directors might want to buy and sell shares, and some are completely unrelated to business performance. For example, a director might have to sell shares to meet a divorce settlement.

As it is illegal to trade on inside information, it is not likely a director will buy or sell shares ahead of a major advertising material. However, a series of transactions by one or more directors can be a strong indication of insider sentiment.

As directors rarely reveal why they have been buying or selling, these transactions should only be used as a starting point for further research.

This list is not exhaustive. It excludes any deals with a value of less than £1,000, shares bought as part of a dividend reinvestment plan (DRIP), and option exercises.

Director buys for the week ending 29 April 2022

Quarto Group’s executive director, Kin Lau Chuk, forked out around £130,000 to increase his stake in the company to more than 50% last week. The transactions were conducted via his holding company, 1010 Printing Limited, which is registered in Hong Kong.

Days after Tatton Asset Management, an investment management and IFA support services group, announced the acquisition of 50% of the issued share capital of 8AM Global Limited, and a 26.1% increase in assets under management for the year to the end of March, its CEO Paul Hogarth and CFO Paul Edwards were in the market increasing their stakes. The duo now owns 17.4% of the business.

Director sells for the week ending 29 April 2022

Saber Insurance directors Geoffrey Carter and Adam Westwood both dumped large stakes in the insurance group last week. The company has been struggling to compete in the UK’s highly aggressive car insurance market, and profits have dropped as a result. The company’s figures for 2021, published on 22 March, show a decline in profit after tax from £39.8m to £30.1m. The company reduced its dividend per share for the year from 16p to 13p.

Hilton Food Group chairman Robert Watson sold another block of 100,000 shares in the company last week. This was the second time in the space of a week following the company’s full-year results at the beginning of April. Hilton’s sales and profits grew 21.6% and 13% respectively last year.

Source: https://www.youinvest.co.uk/markets/directorsdeals

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