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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 Strip Tinning Holdings plc's (LON:STG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Strip Tinning Holdings
The Last 12 Months Of Insider Transactions At Strip Tinning Holdings
The Deputy Chair Richard Barton made the biggest insider purchase in the last 12 months. That single transaction was for UK£50k worth of shares at a price of UK£0.40 each. That means that an insider was happy to buy shares at above the current price of UK£0.39. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 Strip Tinning Holdings insiders bought shares during the last year, they didn't sell. 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!
Strip Tinning Holdings 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.
Does Strip Tinning Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Strip Tinning Holdings insiders own 51% of the company, worth about UK£3.5m. 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 Strip Tinning Holdings Insider Transactions Indicate?
The fact that there have been no Strip Tinning Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Strip Tinning Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Strip Tinning Holdings (3 are a bit unpleasant!) that we believe deserve your full attention.