Yahoo Finance Insiders who bought in the last 12 months lose an additional UK£43k as The Restaurant Group plc (LON:RTN) drops to UK£313m
The recent price decline of 14% in The Restaurant Group plc's (LON:RTN) stock may have disappointed insiders who bought UK£286k worth of shares at an average price of UK£0.48 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£243k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Restaurant Group
The Last 12 Months Of Insider Transactions At Restaurant Group
Over the last year, we can see that the biggest insider purchase was by CEO & Director Andy Hornby for UK£159k worth of shares, at about UK£0.42 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.41). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Restaurant Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.48. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Restaurant Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Restaurant Group. Overall, two insiders shelled out UK£209k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Restaurant Group insiders own about UK£702k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Restaurant Group Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Restaurant Group insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Restaurant 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.
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