Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Altitude Group plc( LON:ALT ), that sends out a positive 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.
The Last 12 Months Of Insider Transactions At Altitude Group
The insider Graham Mark Feltham made the biggest insider purchase in the last 12 months. That single transaction was for UK£93k worth of shares at a price of UK£0.22 each. That means that an insider was happy to buy shares at above the current price of UK£0.21. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Graham Mark Feltham was also the biggest seller.
In the last twelve months insiders purchased 1.08m shares for UK£242k. But they sold 543.94k shares for UK£113k. In the last twelve months there was more buying than selling by Altitude Group insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Altitude Group
There are plenty of other companies that have insiders buying up shares. You probably do notwant to miss this free list of undervalued small cap companies that insiders are buying.
Altitude Group Insiders Bought Stock Recently
We saw some Altitude Group insider buying shares in the last three months. They bought UK£45k worth in that time. However, COO & Executive Director Deborah Wilkinson netted UK£20k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership Of Altitude Group
For a common shareholder, it is worth checking how many shares are held by company 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. Altitude Group insiders own about UK£6.2m worth of shares (which is 41% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Altitude Group Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Altitude Group insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Altitude Group.
But note: Altitude Group 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.
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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.
