In This Article:
Even if it's not a huge purchase, we think it was good to see that Lyndon Faulkner, the Non-Executive Director of CyanConnode Holdings plc (LON:CYAN) recently shelled out UK£50k to buy stock, at UK£0.099 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for CyanConnode Holdings
CyanConnode Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director William Johns-Powell for UK£231k worth of shares, at about UK£0.08 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 3.70m shares worth UK£310k. On the other hand they divested 2.89m shares, for UK£231k. Overall, CyanConnode Holdings insiders were net buyers during the last year. 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!
CyanConnode Holdings 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.
Insider Ownership Of CyanConnode Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CyanConnode Holdings insiders own about UK£6.1m worth of shares. That equates to 17% 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.
What Might The Insider Transactions At CyanConnode Holdings Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest CyanConnode Holdings insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for CyanConnode Holdings you should know about.