Yahoo Finance Are Insiders Buying TT Electronics plc (LON:TTG) Stock?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in TT Electronics plc (LON:TTG).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for TT Electronics
The Last 12 Months Of Insider Transactions At TT Electronics
In the last twelve months, the biggest single purchase by an insider was when Senior Independent Non-Executive Director Stephen King bought UK£51k worth of shares at a price of UK£2.21 per share. That means that an insider was happy to buy shares at around the current price of UK£2.42. 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. 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. Happily, the TT Electronics insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders bought 68836 shares for a total of UK£150k. TT Electronics insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
TT Electronics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does TT Electronics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that TT Electronics insiders own about UK£4.3m worth of shares (which is 1.1% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The TT Electronics Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more TT Electronics stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for TT Electronics.
Of course TT Electronics 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.
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.
