Whilst it may not be a huge deal, we thought it was good to see that the EMIS Group plc (LON:EMIS) CEO & Executive Director, Andrew Thorburn, recently bought UK£77k worth of stock, for UK£7.67 per share. That purchase might not be huge but it did increase their holding by 31%.
The Last 12 Months Of Insider Transactions At EMIS Group
In fact, the recent purchase by Andrew Thorburn was the biggest purchase of EMIS Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£8.84 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
EMIS Group insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£9.82 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of EMIS Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. From what we can see in our data, insiders own only about UK£599k worth of EMIS Group shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The EMIS Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that EMIS Group insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of EMIS Group.
But note: EMIS Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
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