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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 Secure Trust Bank PLC's (LON:STB) 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Secure Trust Bank
Secure Trust Bank Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director David McCreadie bought UK£101k worth of shares at a price of UK£5.90 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£8.06. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Secure Trust Bank insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Secure Trust Bank Insiders Bought Stock Recently
Over the last quarter, Secure Trust Bank insiders have spent a meaningful amount on shares. We can see that CEO & Director David McCreadie paid UK£81k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Secure Trust Bank, though insiders do hold about UK£575k worth of shares. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Secure Trust Bank Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Secure Trust Bank insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Secure Trust Bank. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Secure Trust Bank.