Whilst it may not be a huge deal, we thought it was good to see that the Connect Group PLC (LON:CNCT) Non-Executive Chairman, Gary Kennedy, recently bought UK£58k worth of stock, for UK£0.29 per share. While that isn't the hugest buy, it actually boosted their shareholding by 333%, which is good to see.
The Last 12 Months Of Insider Transactions At Connect Group
Notably, that recent purchase by Gary Kennedy is the biggest insider purchase of Connect Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.29). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Gary Kennedy was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Connect Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Connect Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about UK£369k worth of Connect Group shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Connect Group Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Connect Group insiders are reasonably well aligned, and optimistic for the future. 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.
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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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.