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Whilst it may not be a huge deal, we thought it was good to see that the Card Factory plc (LON:CARD) CEO & Executive Director, Darcy Willson-Rymer, recently bought UK£50k worth of stock, for UK£1.00 per share. However, it only increased their shares held by 9.8%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Card Factory
Card Factory Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Executive Director Darcy Willson-Rymer was not their only acquisition of Card Factory shares this year. Earlier in the year, they paid UK£0.97 per share in a UK£90k purchase. So it's clear an insider wanted to buy, at around the current price, which is UK£1.03. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Card Factory share holders is that insiders were buying at near the current price.
While Card Factory insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Card Factory insiders have about 0.2% of the stock, worth approximately UK£830k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Card Factory Tell Us?
It is good to see recent purchasing. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Card Factory. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Card Factory.