Despite the fact that Arqit Quantum Inc.'s (NASDAQ:ARQQ) value has dropped 11% in the last week insiders who sold US$34m worth of stock in the past 12 months have had less success. The average selling price of US$57.42 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Arqit Quantum

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$17.56. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Manfredi D’Ovidio. Notably Manfredi D’Ovidio was also the biggest buyer, having purchased US$14m worth of shares.

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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Arqit Quantum insiders own about US$185m worth of shares (which is 64% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Arqit Quantum Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Arqit Quantum insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arqit Quantum.

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.