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Whilst it may not be a huge deal, we thought it was good to see that the Intercede Group plc (LON:IGP) Non-Executive Chairman, Royston Hoggarth, recently bought UK£70k worth of stock, for UK£0.70 per share. That purchase might not be huge but it did increase their holding by 17%.
See our latest analysis for Intercede Group
Intercede Group Insider Transactions Over The Last Year
Notably, that recent purchase by Royston Hoggarth is the biggest insider purchase of Intercede Group shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.78. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Intercede Group insiders bought shares during the last year, they didn't sell. The average buy price was around UK£0.58. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Intercede Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Intercede Group
For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Intercede Group insiders own 13% of the company, worth about UK£6.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Intercede Group Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Intercede Group insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Intercede Group has 2 warning signs and it would be unwise to ignore these.