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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 Windar Photonics PLC's (LON:WPHO) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Windar Photonics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non Executive Director Paul Hodges for UK£93k worth of shares, at about UK£0.42 per share. That means that even when the share price was higher than UK£0.42 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 390.23k shares for UK£164k. But they sold 95.43k shares for UK£40k. In total, Windar Photonics insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Windar Photonics
Windar Photonics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Windar Photonics Insiders Buying Or Selling?
We saw insider selling worth UK£40k in the last three months. But that was only a smidgen more than the UK£40k worth of buying. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership Of Windar Photonics
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 indicates that Windar Photonics insiders own about UK£5.2m worth of shares (which is 13% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.