Whilst it may not be a huge deal, we thought it was good to see that the Electrocomponents plc (LON:ECM) Independent Non-Executive Director, Simon Pryce, recently bought UK£61k worth of stock, for UK£6.12 per share. Even though that isn't a massive buy, it did increase their holding by 56%, which is a arguably a good sign.
See our latest analysis for Electrocomponents
The Last 12 Months Of Insider Transactions At Electrocomponents
In fact, the recent purchase by Simon Pryce was the biggest purchase of Electrocomponents shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£5.95). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months Electrocomponents insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Electrocomponents Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Electrocomponents insiders own about UK£7.5m worth of shares (which is 0.3% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Electrocomponents Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Electrocomponents insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Electrocomponents, you should check out this free report on analyst forecasts for the company.