Investors who take an interest in Polarean Imaging plc (LON:POLX) should definitely note that the Non-Executive Director, Jonathan Allis, recently paid UK£0.30 per share to buy UK£100k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 22%.
Polarean Imaging Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Executive Director Jonathan Allis was not their only acquisition of Polarean Imaging shares this year. Earlier in the year, they paid UK£0.13 per share in a UK£201k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.35. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Polarean Imaging insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.16 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by 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!
Polarean Imaging 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 Polarean Imaging
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Polarean Imaging insiders own about UK£11m worth of shares. That equates to 26% 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 Does This Data Suggest About Polarean Imaging Insiders?
It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest Polarean Imaging insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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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