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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Card Factory plc's (LON:CARD) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Card Factory
Card Factory Insider Transactions Over The Last Year
The CEO & Executive Director Darcy Willson-Rymer made the biggest insider purchase in the last 12 months. That single transaction was for UK£90k worth of shares at a price of UK£0.97 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.89). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Card Factory insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Card Factory is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Have Card Factory Insiders Traded Recently?
We saw some Card Factory insider buying shares in the last three months. Independent Senior Non-Executive Director Pamela Powell bought UK£4.9k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
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. Our information indicates that Card Factory insiders own about UK£700k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.