Bullish INSPECS Group plc (LON:SPEC) insiders were rewarded last week as their US$701k investment inflated to US$1.2m
Last week, INSPECS Group plc (LON:SPEC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 20% last week, resulting in a UK£19m increase in the company's market worth. Put another way, the original US$701k acquisition is now worth US$1.2m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for INSPECS Group
INSPECS Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder & Executive Chairman Robin Totterman for UK£400k worth of shares, at about UK£0.48 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.12. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months INSPECS Group insiders were buying shares, but not selling. They paid about UK£0.66 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. INSPECS Group insiders own about UK£23m worth of shares. That equates to 21% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At INSPECS Group Tell Us?
It doesn't really mean much that no insider has traded INSPECS Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in INSPECS Group and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing INSPECS Group. To that end, you should learn about the 3 warning signs we've spotted with INSPECS Group (including 2 which make us uncomfortable).
Of course INSPECS Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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