Yahoo Finance Great news for IP Group Plc (LON:IPO): Insiders acquired stock in large numbers last year
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 IP Group Plc (LON:IPO), that sends out a positive message to the company's shareholders.
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.
View our latest analysis for IP Group
The Last 12 Months Of Insider Transactions At IP Group
In the last twelve months, the biggest single purchase by an insider was when insider Chris Glasson bought UK£44k worth of shares at a price of UK£0.59 per share. That means that an insider was happy to buy shares at above the current price of UK£0.56. 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 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 IP Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
IP Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At IP Group Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at IP Group. Not only was there no selling that we can see, but they collectively bought UK£67k worth of shares. This is a positive in our book as it implies some confidence.
Does IP Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£1.0m worth of IP Group stock, about 0.2% of the company. I generally like to see higher levels of ownership.
So What Do The IP Group Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that IP Group insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IP Group. Every company has risks, and we've spotted 2 warning signs for IP Group you should know about.
But note: IP 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.
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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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