When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Gresham Technologies plc's (LON:GHT) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Gresham Technologies
The Last 12 Months Of Insider Transactions At Gresham Technologies
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Peter Simmonds bought UK£100k worth of shares at a price of UK£1.60 per share. That implies that an insider found the current price of UK£1.64 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Gresham Technologies insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Does Gresham Technologies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Gresham Technologies insiders own about UK£5.5m worth of shares (which is 4.1% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Gresham Technologies Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Gresham Technologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Gresham Technologies stock. 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, Gresham Technologies has 2 warning signs (and 1 which is significant) we think you should know about.