Home » Insiders At Nexus Infrastructure Sold UK£14m Of Stock Potentially Indicating Weakness

Insiders At Nexus Infrastructure Sold UK£14m Of Stock Potentially Indicating Weakness

Despite a 10.0% gain in Nexus Infrastructure plc’s (LON:NEXS) stock price this week, shareholders shouldn’t let up. In spite of the relatively cheap prices, insiders made the decision to sell UK£14m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Nexus Infrastructure

Nexus Infrastructure Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Michael Morris, sold UK£14m worth of shares at a price of UK£1.63 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. It’s of some comfort that this sale was conducted at a price well above the current share price, which is UK£0.82. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Nexus Infrastructure shares, than buying. You can see the insider transactions (by companies and 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!

AIM:NEXS Insider Trading Volume March 8th 2024

I will like Nexus Infrastructure better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Nexus Infrastructure

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. It appears that Nexus Infrastructure insiders own 38% of the company, worth about UK£2.8m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Nexus Infrastructure Insiders?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. Our analysis of Nexus Infrastructure insider transactions leaves us cautious. But it’s good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Nexus Infrastructure. Every company has risks, and we’ve spotted 2 warning signs for Nexus Infrastructure (of which 1 shouldn’t be ignored!) you should know about.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Nexus Infrastructure is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.