We'd be surprised if Arqit Quantum Inc. (NASDAQ:ARQQ) shareholders haven't noticed that the General Counsel & Corporate Secretary, Patrick Willcocks, recently sold US$118k worth of stock at US$29.48 per share. That sale was 34% of their holding, so it does make us raise an eyebrow.

Arqit Quantum Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Vice Chairman & Senior Independent Director, Manfredi D'ovidio De Clunieres Di Balsorano, for US$34m worth of shares, at about US$57.42 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$23.52. So it may not tell us anything about how insiders feel about the current share price. Notably Manfredi D'ovidio De Clunieres Di Balsorano was also the biggest buyer, having purchased US$14m worth of shares.

In total, Arqit Quantum insiders sold more than they bought over the last year. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Arqit Quantum Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Arqit Quantum insiders own 62% of the company, currently worth about US$297m 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 Does This Data Suggest About Arqit Quantum Insiders?

Insiders haven't bought Arqit Quantum stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: Arqit Quantum may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.