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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 Watkin Jones Plc (LON:WJG), 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.
Check out our latest analysis for Watkin Jones
The Last 12 Months Of Insider Transactions At Watkin Jones
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Alan Clifford Giddins bought UK£194k worth of shares at a price of UK£0.47 per share. That means that an insider was happy to buy shares at above the current price of UK£0.46. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
Watkin Jones 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Watkin Jones is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£854k worth of Watkin Jones stock, about 0.7% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Watkin Jones Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Watkin Jones stock. Of course, the future is what matters most. So if you are interested in Watkin Jones, you should check out this free report on analyst forecasts for the company.