Anyone interested in Arqit Quantum Inc. (NASDAQ:ARQQ) should probably be aware that the CEO & Director, Andrew Leaver, recently divested US$103k worth of shares in the company, at an average price of US$13.51 each. That sale was 14% 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, for US$34m worth of shares, at about US$57.42 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 US$12.44. So it may not tell us anything about how insiders feel about the current share price. Notably Manfredi D’Ovidio 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 the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Arqit Quantum

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Arqit Quantum insiders own 64% of the company, currently worth about US$130m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Arqit Quantum Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course Arqit Quantum 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 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.