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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Fintel Plc's (LON:FNTL) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Fintel
The Last 12 Months Of Insider Transactions At Fintel
Over the last year, we can see that the biggest insider purchase was by Joint CEO & Director Neil Stevens for UK£56k worth of shares, at about UK£2.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.08). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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 Fintel insiders bought shares during the last year, they didn't sell. 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!
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 Fintel Have Bought Stock Recently
It's good to see that Fintel insiders have made notable investments in the company's shares. Overall, two insiders shelled out UK£93k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Fintel 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 34% of Fintel shares, worth about UK£74m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Fintel Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Fintel insiders are well aligned, and that they may think the share price is too low. 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. For example, Fintel has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.