Have Insiders Been Buying Xeros Technology Group plc (LON:XSG) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Xeros Technology Group plc (LON:XSG), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Xeros Technology Group
Xeros Technology Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO, Company Secretary & Director Paul Denney bought UK£50k worth of shares at a price of UK£0.01 per share. That implies that an insider found the current price of UK£0.011 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Xeros Technology Group insiders were buying shares, but not selling. Their average price was about UK£0.016. This is nice to see since it implies that insiders might see value around current prices. 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 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 Xeros Technology Group Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Xeros Technology Group. Overall, three insiders shelled out UK£150k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Xeros Technology Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Xeros Technology Group insiders own 2.0% of the company, worth about UK£168k. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Xeros Technology Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Xeros Technology Group stock. Of course, the future is what matters most. So if you are interested in Xeros Technology Group, you should check out this free report on analyst forecasts for the company.
Of course Xeros Technology 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
