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Some of the losses seen by insiders who purchased UK£327.1k worth of Springfield Properties PLC (LON:SPR) shares over the past year were recovered after the stock increased by 13% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled UK£61k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Springfield Properties
The Last 12 Months Of Insider Transactions At Springfield Properties
Over the last year, we can see that the biggest insider purchase was by Part Time Executive Chairman Alexander Adam for UK£173k worth of shares, at about UK£0.78 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.64). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 415.21k shares for UK£327k. But insiders sold 109.00k shares worth UK£88k. Overall, Springfield Properties insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. 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).
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's great to see that Springfield Properties insiders own 41% of the company, worth about UK£31m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Springfield Properties Tell Us?
It doesn't really mean much that no insider has traded Springfield Properties shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Springfield Properties insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Springfield Properties has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.