Yahoo Finance Should You Take Comfort From Insider Transactions At Nanoco Group plc (LON:NANO)?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Nanoco Group plc (LON:NANO).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Nanoco Group
Nanoco Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Richard Griffiths, for UK£596k worth of shares, at about UK£0.14 per share. So we know that an insider sold shares at around the present share price of UK£0.12. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Richard Griffiths was the only individual insider to sell over the last year. Notably Richard Griffiths was also the biggest buyer, having purchased UK£824k worth of shares.
Over the last year, we can see that insiders have bought 4.92m shares worth UK£824k. On the other hand they divested 4.54m shares, for UK£629k. Overall, Nanoco Group insiders were net buyers during the last year. They paid about UK£0.17 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Nanoco Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Nanoco Group Insiders Bought Stock Recently
There was some insider buying at Nanoco Group over the last quarter. Independent Non-Executive Chairman Christopher G. Richards purchased UK£9.5k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Nanoco Group shares, worth about UK£6.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Nanoco Group Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Nanoco Group insiders are doubting the company, and they do own shares. While we like knowing 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. For instance, we've identified 5 warning signs for Nanoco Group (1 is a bit unpleasant) you should be aware of.
But note: Nanoco 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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