My intention when I downloaded the entire history of director dealings was to post a one-line comment on Ed's post - but as with many of my comments here - I seem to eat up the digital landscape - so a separate post was appropriate. 


Completely understand logical aspects behind following people with “skin the game” - but there might be another side of the coin here where completely self-absorbed or inflated egoistical mindsets fuel these transactions - so I have a simple question -

Are these transactions worth following?

Download all 175,057 “Director dealings” since 01/01/2000 to 27/11/2020
Suppressed non sterling transactions - Gross count 4,580
Suppressed zero value transactions - Gross count 36,71
Suppressed transaction types which are labelled Buy or Sell (Only intentional timed transactions remain)

Before we answer the main question - lets first get a feeling for the data.

How many transactions are listed in a year?


There has been a steady but significant increase of director transactions in the past 2 decades with over 4/5 been purchases rather than sales. But this is actually quite misleading when looking at the value of the transactions displayed on the next table.

Whats the value transactions listed in a year?


Most recently the yearly total purchases have averaged around £500 Million - but the sales have averaged around £1.5 Billion. Despite a sale only accounting for 20% of transactions, they are on average 14 times larger in value than a purchase leading to 75% of the transactions value. In my opinion, these purchases are not “timed trades” but investments where individuals are drip feeding over time and pulling their investment all at once - presumably due to retirement/life events.


So who is making these transactions?


Opinions are welcome here - but its interesting to note where financial directors sit on this list.

So, have these directors transaction been actually profitable? (Median Value)


Since 2013, the majority of purchases are sitting at a loss with the exception been 2020 where individuals took advantage of the uncertainty.…

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