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Investors who take an interest in Card Factory plc (LON:CARD) should definitely note that the CEO & Executive Director, Darcy Willson-Rymer, recently paid UK£0.97 per share to buy UK£90k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 35%.
Check out our latest analysis for Card Factory
The Last 12 Months Of Insider Transactions At Card Factory
Notably, that recent purchase by Darcy Willson-Rymer is the biggest insider purchase of Card Factory shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£0.93. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Darcy Willson-Rymer was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
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. Our data isn't picking up on much insider ownership at Card Factory, though insiders do hold about UK£755k worth of 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 Card Factory Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Card Factory insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Card Factory you should be aware of.