Bullish RS Group Insiders Loaded Up On UK£806k Of Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in RS Group plc's (LON:RS1) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for RS Group
The Last 12 Months Of Insider Transactions At RS Group
The CEO & Executive Director Simon Pryce made the biggest insider purchase in the last 12 months. That single transaction was for UK£249k worth of shares at a price of UK£8.04 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£7.53). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While RS Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).
Insiders At RS Group Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at RS Group. Specifically, CEO & Executive Director Simon Pryce bought UK£224k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of RS 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that RS Group insiders own 0.1% of the company, worth about UK£4.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The RS Group Insider Transactions Indicate?
The recent insider purchase is heartening. 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 RS Group insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for RS Group.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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.
