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Investors who take an interest in SysGroup plc (LON:SYS) should definitely note that the Executive Chairman, Heejae Chae, recently paid UK£0.17 per share to buy UK£140k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 10%.
See our latest analysis for SysGroup
The Last 12 Months Of Insider Transactions At SysGroup
Notably, that recent purchase by Heejae Chae is the biggest insider purchase of SysGroup shares that we've seen in the last year. That implies that an insider found the current price of UK£0.18 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for SysGroup share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Heejae Chae.
Heejae Chae purchased 950.00k shares over the year. The average price per share was UK£0.18. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of SysGroup
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SysGroup insiders own 21% of the company, worth about UK£3.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At SysGroup Tell Us?
It's certainly positive to see the recent insider purchase. 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. When combined with notable insider ownership, these factors suggest SysGroup insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. Be aware that SysGroup is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...