Several Insiders Invested In Premier Miton Group Flagging Positive News \
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Premier Miton Group plc's (LON:PMI) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Premier Miton Group
The Last 12 Months Of Insider Transactions At Premier Miton Group
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Michael O'Shea for UK£44k worth of shares, at about UK£0.87 per share. That means that an insider was happy to buy shares at around the current price of UK£0.93. 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. In this case we're pleased to report that the insider purchases were made at close to current prices. Notably Michael O'Shea was also the biggest seller.
Happily, we note that in the last year insiders paid UK£87k for 89.57k shares. But insiders sold 43.93k shares worth UK£45k. In total, Premier Miton Group insiders bought more than they sold over the last year. They paid about UK£0.97 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Premier Miton Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Premier Miton Group Insiders Are Selling The Stock
Over the last three months, we've seen a bit of insider selling at Premier Miton Group. CEO & Executive Director Michael O'Shea divested only UK£20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.2% of Premier Miton Group shares, worth about UK£13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Premier Miton Group Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Premier Miton Group 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 Premier Miton Group. In terms of investment risks, we've identified 1 warning sign with Premier Miton Group and understanding this should be part of your investment process.
Of course Premier Miton 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.
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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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