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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Capital Limited's (LON:CAPD) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Our free stock report includes 3 warning signs investors should be aware of before investing in Capital. Read for free now.
The Last 12 Months Of Insider Transactions At Capital
The Executive Chairman Jamie Boyton made the biggest insider purchase in the last 12 months. That single transaction was for UK£63k worth of shares at a price of UK£0.62 each. That means that an insider was happy to buy shares at around the current price of UK£0.69. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Capital share holders is that insiders were buying at near the current price.
In the last twelve months Capital insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Capital
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).
Capital Insiders Bought Stock Recently
Over the last quarter, Capital insiders have spent a meaningful amount on shares. In total, insiders bought UK£98k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Capital
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Capital shares, worth about UK£24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Capital Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Capital we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Capital. For example - Capital has 3 warning signs we think you should be aware of.