Yahoo Finance Positive Signs As Multiple Insiders Buy Redde Northgate Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Redde Northgate plc's (LON:REDD) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Redde Northgate
The Last 12 Months Of Insider Transactions At Redde Northgate
Over the last year, we can see that the biggest insider purchase was by CEO & Director Martin Ward for UK£199k worth of shares, at about UK£3.19 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£3.79. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£357k for 109.42k shares. On the other hand they divested 5.40k shares, for UK£20k. In total, Redde Northgate insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Redde Northgate is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Redde Northgate Have Bought Stock Recently
We saw some Redde Northgate insider buying shares in the last three months. Independent Non-Executive Director Nicola Rabson bought UK£9.9k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Redde Northgate Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that Redde Northgate insiders own 1.8% of the company, worth about UK£15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Redde Northgate Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Redde Northgate insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Redde Northgate. When we did our research, we found 3 warning signs for Redde Northgate (2 make us uncomfortable!) that we believe deserve your full attention.
But note: Redde Northgate may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
