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Those following along with Creo Medical Group PLC (LON:CREO) will no doubt be intrigued by the recent purchase of shares by Kevin Crofton, Chairman of the company, who spent a stonking UK£700k on stock at an average price of UK£0.24. That increased their holding by a full 449%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
View our latest analysis for Creo Medical Group
The Last 12 Months Of Insider Transactions At Creo Medical Group
Notably, that recent purchase by Kevin Crofton is the biggest insider purchase of Creo Medical Group shares that we've seen in the last year. That means that even when the share price was higher than UK£0.20 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Creo Medical Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Creo Medical Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Creo Medical Group insiders own 4.6% of the company, worth about UK£3.3m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Creo Medical Group Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Creo Medical Group insiders are expecting a bright future. While it's good to be aware of 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. In terms of investment risks, we've identified 3 warning signs with Creo Medical Group and understanding them should be part of your investment process.