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Even if it's not a huge purchase, we think it was good to see that Paul Hodges, the Independent Non Executive Director of Windar Photonics PLC (LON:WPHO) recently shelled out UK£81k to buy stock, at UK£0.36 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.
Check out our latest analysis for Windar Photonics
The Last 12 Months Of Insider Transactions At Windar Photonics
In the last twelve months, the biggest single purchase by an insider was when Founder Jorgen Jensen bought UK£100k worth of shares at a price of UK£0.15 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.41. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Windar Photonics insiders bought shares during the last year, they didn't sell. They paid about UK£0.20 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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 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
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. It appears that Windar Photonics insiders own 15% of the company, worth about UK£4.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Windar Photonics Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Windar Photonics insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 4 warning signs for Windar Photonics and we suggest you have a look.