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Even if it's not a huge purchase, we think it was good to see that Elaine O’Donnell, the Senior Independent Non-Executive Director of The Gym Group plc (LON:GYM) recently shelled out UK£40k to buy stock, at UK£1.62 per share. While that isn't the hugest buy, it actually boosted their shareholding by 125%, which is good to see.
See our latest analysis for Gym Group
Gym Group Insider Transactions Over The Last Year
Notably, that recent purchase by Elaine O’Donnell is the biggest insider purchase of Gym Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£1.64. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Elaine O’Donnell was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Gym Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£3.1m worth of Gym Group stock, about 1.1% of the company. We prefer to see high levels of insider ownership.
So What Do The Gym Group Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Gym Group insiders bought more shares in the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Gym Group.
But note: Gym Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.