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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Corcel Plc (LON:CRCL).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
Check out our latest analysis for Corcel
Corcel Insider Transactions Over The Last Year
In fact, the recent purchase by James Parsons was the biggest purchase of Corcel shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£0.021. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that James Parsons was also the biggest seller.
Happily, we note that in the last year insiders paid UK£88k for 4.69m shares. But insiders sold 3.09m shares worth UK£65k. Overall, Corcel insiders were net buyers during the last year. Their average price was about UK£0.019. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders at Corcel Have Bought Stock Recently
We saw some Corcel insider buying shares in the last three months. They bought UK£88k worth in that time. On the other hand, Executive Chairman of the Board James Parsons sold UK£65k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.