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Triad Group plc (LON:TRD) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, John Rigg, recently bought a whopping UK£1.3m worth of stock, at a price of UK£3.15. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 18%.
Check out our latest analysis for Triad Group
The Last 12 Months Of Insider Transactions At Triad Group
In fact, the recent purchase by John Rigg was the biggest purchase of Triad Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£3.05. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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 Triad Group 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 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).
Does Triad Group Boast High 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. It's great to see that Triad Group insiders own 66% of the company, worth about UK£34m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Triad Group Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Triad Group. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Triad Group has 3 warning signs (and 1 which is a bit concerning) we think you should know about.