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LSE insider joins sell-off

FTSE Russell chief executive has cashed in 20,890 shares, at £79 a pop
March 11, 2020

Like all investors, insiders who own stock in their company are not immune to the panic that sets in when markets enter freefall. But unlike ordinary investors, they have an unofficial duty to show confidence and restraint at times of peak distress.

IC TIP: Hold at 7,174p

This might help to explain why we have seen fewer director sales in the past fortnight. Bucking this trend is Waqas Samad, the director of information services and chief executive of FTSE Russell, the index provider subsidiary of the London Stock Exchange (LSE). On 4 March, amid a short-lived rally in UK equities, Mr Samad sold 20,890 shares in the FTSE 100 giant, banking £1.65m in the process.

From a day trader’s perspective, he appears to have got his timing bang on. Since Mr Samad cashed in some of his chips, shares in the bourse are down 9 per cent at £71.74.

It might be tempting to second guess the reasons for the disposal, particularly with the LSE’s purchase of financial data group Refinitiv yet to pass Europe’s regulators. But as we have argued for some months, shares in the LSE are priced for perfection; when Mr Samad sold his at £79, the stock was trading on 36 times consensus earnings for 2020.

Plus, judging by others’ disclosures, this clearly isn’t LSE insiders’ house view. In the same week, non-executive directors Marshall Bailey and Val Rahmani both bought in at a price between £76.38 and £79.27.

Buys      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
International Cons AirlinesAntonio Vazquez Romero03 Mar 2084,000465390,600Original price €5.344
International Cons AirlinesFrancisco Javier Ferran Larraz03 Mar 20144,000454653,760Original price range €5.218-€5.229
ElementisRalph Hewins04 Mar 2015,03499.7714,999 
HammersonAdam Metz04 Mar 2020,00019939,800 
London Stock ExchangeVal Rahmani04 Mar 201,1297,927.2889,499 
ElectrocomponentsSimon Pryce05 Mar 2010,000611.861,180 
CLS HoldingsAndrew Kirkman (cfo)05 Mar 2050,000269.63134,815 
TymanPaul Withers05 Mar 2025,000253.9563,488 
VodafoneMargherita Della Valle (cfo)05 Mar 2071,246139.3899,303 
VodafoneJoakim Reiter05 Mar 2071,246139.3899,303 
DevroSteve Good (ch)06 Mar 2030,000161.648,480 
SageSteve Hare (ce)06 Mar 205,000672.233,610Residual holding 362,419 shares
Reckitt BenckiserHarold van den Broek06 Mar 2080,0006,000480,000 
CoatsDavid Gosnell06 Mar 20173,41057.3799,491 
Plus500Omar Elazari06 Mar 2070,0009.427659,890 
Melrose IndustriesDavid Roper06 Mar 20541,570183991,999 
Melrose IndustriesSimon Peckham (ceo)09 Mar 20147,652169249,999 
Melrose IndustriesJustin Dowley (ch)09 Mar 20145,000170246,500 
International Cons AirlinesFrancisco Javier Ferran Larraz09 Mar 2085,9004.09351,693Original price €4.6763
Domino's PizzaIan Bull10 Mar 2075,000306.576,625 
Sells      
CompanyDirector/PDMRDateNo. of sharesPrice (p)Aggregate value (£)Comments
London Stock ExchangeWaqas Samad  (PDMR)04 Mar 2020,8907,899.751,650,258