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Even if it's not a huge purchase, we think it was good to see that Paul Larbey, the CEO & Executive Director of Bango PLC (LON:BGO) recently shelled out UK£45k to buy stock, at UK£0.97 per share. That purchase might not be huge but it did increase their holding by 44%.
View our latest analysis for Bango
The Last 12 Months Of Insider Transactions At Bango
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Frank Bury bought UK£52k worth of shares at a price of UK£1.23 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Bango insiders bought shares during the last year, they didn't sell. The average buy price was around UK£1.09. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Bango is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Bango Boast High 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. Bango insiders own about UK£9.1m worth of shares. That equates to 12% of the company. 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 Bango Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bango insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Bango you should be aware of, and 2 of these are concerning.