Insiders who bought ConvaTec Group Plc (LON:CTEC) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£212m as a result of the stock's 4.9% gain over the same period. In other words, the original US$90k purchase is now worth US$91k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
ConvaTec Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Group CFO & Director Jonathan Mason bought UK£49k worth of shares at a price of UK£2.24 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£2.24. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the ConvaTec Group insiders decided to buy shares at close to current prices.
While ConvaTec Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
ConvaTec Group Insiders Bought Stock Recently
It's good to see that ConvaTec Group insiders have made notable investments in the company's shares. Group CFO & Director Jonathan Mason spent UK£49k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership of ConvaTec Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that ConvaTec Group insiders own about UK£4.8m worth of shares (which is 0.1% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About ConvaTec Group Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if ConvaTec Group insiders bought more shares in the company. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of ConvaTec Group.
Of course ConvaTec Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.