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Investors who take an interest in Capita plc (LON:CPI) should definitely note that the CFO & Executive Director, Tim Weller, recently paid UK£0.17 per share to buy UK£90k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 196%, potentially signalling some real optimism.
View our latest analysis for Capita
The Last 12 Months Of Insider Transactions At Capita
In fact, the recent purchase by Tim Weller was the biggest purchase of Capita shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£0.16 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Capita insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Capita
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about UK£424k worth of Capita shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Does This Data Suggest About Capita Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. 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 Capita stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Capita (1 can't be ignored) you should be aware of.