Yahoo Finance Read This Before Selling Spire Healthcare Group plc (LON:SPI) Shares
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Spire Healthcare Group plc (LON:SPI).
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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Spire Healthcare Group
The Last 12 Months Of Insider Transactions At Spire Healthcare Group
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Simon Rowlands for UK£199k worth of shares, at about UK£0.77 per share. That means that an insider was happy to buy shares at around the current price of UK£0.89. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Spire Healthcare Group insiders decided to buy shares at close to current prices.
Spire Healthcare Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Spire Healthcare Group Insiders Bought Stock Recently
Over the last quarter, Spire Healthcare Group insiders have spent a meaningful amount on shares. Non-Executive Director Simon Rowlands spent UK£199k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Does Spire Healthcare Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Spire Healthcare Group insiders have about 0.5% of the stock, worth approximately UK£1.7m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Spire Healthcare Group Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Spire Healthcare Group stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Spire Healthcare Group (1 is potentially serious!) and we strongly recommend you look at them before investing.
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.
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. 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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