Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Solid State Stock \
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Solid State plc's (LON:SOLI) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Solid State
The Last 12 Months Of Insider Transactions At Solid State
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Gary Marsh for UK£40k worth of shares, at about UK£14.01 per share. That means that an insider was happy to buy shares at above the current price of UK£11.25. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Gary Marsh was also the biggest seller.
Happily, we note that in the last year insiders paid UK£259k for 23.07k shares. But insiders sold 12.53k shares worth UK£161k. In total, Solid State insiders bought more than they sold over the last year. The average buy price was around UK£11.21. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!
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.
Solid State Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Solid State shares over the last three months. We note insiders cashed in UK£93k worth of shares. On the other hand we note insiders bought UK£45k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Solid State insiders own 14% of the company, worth about UK£17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Solid State Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. Insiders own shares in Solid State and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Solid State. Case in point: We've spotted 3 warning signs for Solid State you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
