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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of James Cropper PLC (LON:CRPR), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for James Cropper
The Last 12 Months Of Insider Transactions At James Cropper
Notably, that recent purchase by Mark A. Cropper is the biggest insider purchase of James Cropper shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£2.00. 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. Happily, the James Cropper insiders decided to buy shares at close to current prices. We note that Mark A. Cropper was also the biggest seller.
Happily, we note that in the last year insiders paid UK£247k for 122.96k shares. But they sold 5.00k shares for UK£9.9k. In total, James Cropper insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
James Cropper 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.
Insiders At James Cropper Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at James Cropper. In total, two insiders bought UK£239k worth of shares in that time. But Chairman of the Board Mark A. Cropper sold shares worth UK£9.9k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of James Cropper
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. James Cropper insiders own about UK£5.1m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.