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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 Peel Hunt Limited's (LON:PEEL) 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 Peel Hunt
Peel Hunt Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Steven Fine for UK£112k worth of shares, at about UK£1.12 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Peel Hunt 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. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Peel Hunt
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Peel Hunt insiders own about UK£27m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Peel Hunt Insiders?
It doesn't really mean much that no insider has traded Peel Hunt shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Peel Hunt and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peel Hunt. Case in point: We've spotted 1 warning sign for Peel Hunt you should be aware of.
Of course Peel Hunt may not be the best stock to buy. So you may wish to see this free collection of high quality companies.