In December last year I interpreted directors buying activity in Experian (EXPN, 425p) as a STRONG signal due to the number of directors buying, their positions in the group, and the amount of capital committed to the investment. (Followthedirectors December 10th: ‘Arredondo, non exec, adds to Experian holding’)

On Tuesday December 16th we saw the first significant share sales by a Non Executive Director of Experian, David Tyler. Tyler sold 100,000 shares at 413p (Source: London Stock Exchange).

I don’t know what that takes Tylers shareholding in Experian to, but due the significant $$ value I am using the directors share sale as a signal to close my positive view on Experian.

Experian in fact are back to their December 2007 levels, but the FTSE 100 has fallen by 35%.  So you have outperformed the FTSE 100 by 50%.

The signal isn’t yet of significant enough strength to warrant an outright sale on Experian.

View on Experian- Negative. Close positive view of December 10th due to director share sales.

Strength of Signal- Weak. Require more directors sales to justify a stronger signal.

To read all of  Followthedirector analysis of Experian click here.