Pleasing Signs As A Number Of Insiders Buy Secure Trust Bank Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Secure Trust Bank PLC (LON:STB), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Secure Trust Bank
The Last 12 Months Of Insider Transactions At Secure Trust Bank
In the last twelve months, the biggest single purchase by an insider was when CEO & Director David McCreadie bought UK£101k worth of shares at a price of UK£5.90 per share. That implies that an insider found the current price of UK£6.26 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Secure Trust Bank share holders is that insiders were buying at near the current price.
While Secure Trust Bank insiders bought shares during the last year, they didn't sell. 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!
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).
Insider Ownership Of Secure Trust Bank
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 information indicates that Secure Trust Bank insiders own about UK£404k worth of shares. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Secure Trust Bank Tell Us?
The fact that there have been no Secure Trust Bank insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Secure Trust Bank insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Secure Trust Bank. At Simply Wall St, we found 1 warning sign for Secure Trust Bank that deserve your attention before buying any shares.
But note: Secure Trust Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
