Whilst it may not be a huge deal, we thought it was good to see that the Circassia Group Plc (LON:CIR) Executive Chairman, Ian Johnson, recently bought UK£56k worth of stock, for UK£0.37 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 38%.
Circassia Group Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman Ian Johnson was not the only time they bought Circassia Group shares this year. Earlier in the year, they paid UK£0.29 per share in a UK£58k purchase. Even though the purchase was made at a significantly lower price than the recent price (UK£0.38), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Circassia Group insiders were buying shares, but not selling. They paid about UK£0.32 on average. To my mind it is good 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 companies and individuals) over the last year depicted in the chart below. 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).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Circassia Group insiders own about UK£27m worth of shares. That equates to 17% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Circassia Group Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Circassia Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Circassia Group. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Circassia Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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