Yahoo Finance XP Power Limited (LON:XPP) is up 12%, while insiders who purchased UK£856k are up 15%
XP Power Limited (LON:XPP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a UK£46m rise in the company's market capitalisation. In other words, the original UK£856k purchase is now worth UK£987k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for XP Power
The Last 12 Months Of Insider Transactions At XP Power
Over the last year, we can see that the biggest insider purchase was by Founder & Non-Executive Chairman James Peters for UK£757k worth of shares, at about UK£17.82 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£21.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 46.32k shares for UK£856k. On the other hand they divested 42.48k shares, for UK£757k. In total, XP Power insiders bought more than they sold over the last year. You can see the insider transactions (by companies and 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 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.
Insider Ownership Of XP Power
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.6% of XP Power shares, worth about UK£23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The XP Power Insider Transactions Indicate?
The fact that there have been no XP Power insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think XP Power insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for XP Power you should know about.
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.
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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.
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