Yahoo Finance Smartspace Software Insider Confidence Rewarded, Stock Hits UK£14m Market Cap
Smartspace Software plc (LON:SMRT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 32% resulting in a UK£3.5m addition to the company’s market value. As a result, their original purchase of UK£94k worth of stock is now worth UK£112k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Smartspace Software
The Last 12 Months Of Insider Transactions At Smartspace Software
Notably, that recent purchase by Francis Beechinor-Collins is the biggest insider purchase of Smartspace Software shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.49. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Smartspace Software insiders were buying shares, but not selling. 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!
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).
Insiders At Smartspace Software Have Bought Stock Recently
Over the last quarter, Smartspace Software insiders have spent a meaningful amount on shares. Overall, three insiders shelled out UK£94k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Smartspace Software 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 Smartspace Software insiders own about UK£758k worth of shares (which is 5.3% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Smartspace Software Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Smartspace Software insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Smartspace Software has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
But note: Smartspace Software 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, but not derivative transactions.
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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.
