Did GAIN Capital Holdings, Inc. (NYSE:GCAP) Insiders Buy Up More Shares?
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell GAIN Capital Holdings, Inc. (NYSE:GCAP), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for GAIN Capital Holdings
The Last 12 Months Of Insider Transactions At GAIN Capital Holdings
In the last twelve months, the biggest single purchase by an insider was when Director Alexander Goor bought US$79k worth of shares at a price of US$7.97 per share. That means that even when the share price was higher, an insider wanted to purchase shares. 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. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders paid US$152k for 19.91k shares. But insiders sold 9.91k shares worth US$79k. In the last twelve months there was more buying than selling by GAIN Capital Holdings insiders. The average buy price was around US$7.65. These transactions suggest that insiders have considered the current price of US$6.85 attractive. 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.
GAIN Capital Holdings Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at GAIN Capital Holdings. We can see that Chairman of the Board Joseph Schenk paid US$73k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Does GAIN Capital Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. GAIN Capital Holdings insiders own about US$40m worth of shares. That equates to 13% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The GAIN Capital Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in GAIN Capital Holdings shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
