Insider Spends UK£38k Buying More Shares In SIG
Even if it's not a huge purchase, we think it was good to see that Simon Kesterton, the CFO & Executive Director of SIG plc (LON:SHI) recently shelled out UK£38k to buy stock, at UK£0.094 per share. That purchase might not be huge but it did increase their holding by 18%.
The Last 12 Months Of Insider Transactions At SIG
In fact, the recent purchase by CFO & Executive Director Simon Kesterton was not their only acquisition of SIG shares this year. Earlier in the year, they paid UK£0.085 per share in a UK£73k purchase. That implies that an insider found the current price of UK£0.093 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the SIG insiders decided to buy shares at close to current prices.
In the last twelve months SIG insiders were buying shares, but not selling. 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!
View our latest analysis for SIG
SIG is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of SIG
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests SIG insiders own 0.9% of the company, worth about UK£1.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About SIG Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. 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 SIG insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SIG. You'd be interested to know, that we found 2 warning signs for SIG and we suggest you have a look.
But note: SIG 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.