Yahoo Finance Gear4music (Holdings) plc (LON:G4M) insider upped their holding by 1.1% earlier this year
Viewing insider transactions for Gear4music (Holdings) plc's (LON:G4M ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Gear4music (Holdings)
Gear4music (Holdings) Insider Transactions Over The Last Year
The CEO & Executive Director Andrew Wass 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£1.85 each. That means that an insider was happy to buy shares at above the current price of UK£1.09. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Andrew Wass was the only individual insider to buy during the last year.
Andrew Wass purchased 75.00k shares over the year. The average price per share was UK£1.57. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Gear4music (Holdings) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Gear4music (Holdings)
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Gear4music (Holdings) insiders own 25% of the company, worth about UK£5.6m. 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 Does This Data Suggest About Gear4music (Holdings) Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Gear4music (Holdings) and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Gear4music (Holdings) (including 1 which is a bit concerning).
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.
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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.
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