Yahoo Finance Have Insiders Been Buying Card Factory plc (LON:CARD) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Card Factory plc (LON:CARD).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Card Factory
Card Factory Insider Transactions Over The Last Year
CEO & Executive Director Karen Hubbard made the biggest insider purchase in the last 12 months. That single transaction was for UK£79k worth of shares at a price of UK£1.71 each. So it's clear an insider wanted to buy, at around the current price, which is UK£1.94. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Card Factory share holders is that an insider was buying at near the current price. Karen Hubbard was the only individual insider to buy over the year. Notably Karen Hubbard was also the biggest seller, having sold UK£69k worth of shares.
Karen Hubbard purchased 54653 shares over the year. The average price per share was UK£1.74. You can see the insider transactions (by 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!
Card Factory 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.
Insider Ownership of Card Factory
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Card Factory insiders own 5.4% of the company, worth about UK£36m. 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 Card Factory Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Card Factory and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Card Factory, you should check out this free report on analyst forecasts for the company.
Of course Card Factory may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
