Inland Homes plc (LON:INL) drops to UK£21m and insiders who purchased earlier this year lose another UK£119k
The recent price decline of 10% in Inland Homes plc's (LON:INL) stock may have disappointed insiders who bought UK£179k worth of shares at an average price of UK£0.28 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£60k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Inland Homes
Inland Homes Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Advisory Stephen Wicks for UK£80k worth of shares, at about UK£0.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.095). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Inland Homes insiders were buying shares, but not selling. Their average price was about UK£0.28. These transactions suggest that insiders have considered the current price attractive. 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!
Inland Homes is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. Inland Homes insiders own about UK£3.7m worth of shares. That equates to 17% 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.
So What Do The Inland Homes Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Inland Homes shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Inland Homes and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inland Homes. For instance, we've identified 4 warning signs for Inland Homes (2 are a bit unpleasant) you should be aware of.
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.
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