Chemring Group Insider Ups Holding By 183% During Year
Looking at Chemring Group PLC's (LON:CHG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Chemring Group
The Last 12 Months Of Insider Transactions At Chemring Group
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Stephen King for UK£185k worth of shares, at about UK£2.84 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£3.50), we still think insider buying is a positive. 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.
Stephen King purchased 95.00k shares over the year. The average price per share was UK£2.87. 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!
Chemring Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Chemring Group Have Sold Stock Recently
The last quarter saw substantial insider selling of Chemring Group shares. In total, insiders dumped UK£59k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Chemring Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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 our data, it seems that Chemring Group insiders own 0.6% of the company, worth about UK£5.5m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Chemring Group Insider Transactions Indicate?
Insiders haven't bought Chemring Group stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. But we'd like it if insiders owned more stock, overall. So we can't be sure that insiders are optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Chemring Group and understanding this should be part of your investment process.
But note: Chemring 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
