CEO & Executive Director of Card Factory Darcy Willson-Rymer Buys 6.3% More Shares
Even if it's not a huge purchase, we think it was good to see that Darcy Willson-Rymer, the CEO & Executive Director of Card Factory plc (LON:CARD) recently shelled out UK£40k to buy stock, at UK£0.70 per share. Although the purchase is not a big one, increasing their shareholding by only 6.3%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Card Factory
Notably, that recent purchase by CEO & Executive Director Darcy Willson-Rymer was not the only time they bought Card Factory shares this year. Earlier in the year, they paid UK£0.95 per share in a UK£50k purchase. That means that even when the share price was higher than UK£0.70 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Card Factory insiders were buying shares, but not selling. The average buy price was around UK£0.83. This is nice to see since it implies that insiders might see value around current prices. 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!
See our latest analysis for Card Factory
Card Factory is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.5% of Card Factory shares, worth about UK£21m. 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 Card Factory Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Card Factory shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Card Factory that deserve your attention before buying any shares.
But note: Card Factory 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.