In This Article:
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Synthomer plc's (LON:SYNT) 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.
Check out our latest analysis for Synthomer
Synthomer Insider Transactions Over The Last Year
The Non-Executive Director Alexander Catto made the biggest insider purchase in the last 12 months. That single transaction was for UK£100k worth of shares at a price of UK£2.01 each. That means that even when the share price was higher than UK£0.78 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Synthomer insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£1.51. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Synthomer is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Synthomer
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Synthomer insiders own 0.6% of the company, worth about UK£2.1m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Synthomer Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Synthomer insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Synthomer and understanding it should be part of your investment process.