Trainline insiders cash in during Q4

Bosses at Trainline (TRN) were intent on accentuating the positive when the rail and coach ticketing platform revealed its half-year figures at the beginning of November. Under the circumstances, it may seem churlish to question whether its ability to scale back operations as passenger numbers slump will be enough to ward off the worst effects of the pandemic. But the company is uniquely exposed, not only to the immediate impact of the Covid-19 lockdowns, but also to a potential decline in commuter journeys over the long haul.

Towards the end of October, it was announced that Clare Gilmartin, who has been at the helm of the business for seven years, intends to step down from the board next February. Ms Gilmartin successfully took the company public midway through 2019, but she could not have imagined how events would pan out within six months of the initial public offering. In the lead-up to her resignation, she offloaded shares in the company to the value of £3.2bn, which should provide a degree of solace.

Another insider has just followed suit. Chief financial officer Shaun McCabe has sold 600,000 shares in the FTSE 250 constituent, at an average price of 480p a share, giving a total value of £2.88m. The news came a fortnight after it was revealed that Mr McCabe had been appointed as a non-executive director of embattled fast-fashion retailer Boohoo (BOO) – he clearly does not mind a challenge.

With Trainline that amounts to new lockdown measures and expansion of the tier systems. We cannot be sure whether the roll-out of vaccination programmes through the early part of 2021 will result in a significant increase in commuter numbers, so we remain downcast on immediate prospects despite the recent share price rally. Sell at 450p.

Last IC view: Sell, 287p, 05 Nov 2020