Pleasing Signs As A Number Of Insiders Buy Tracsis Stock

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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tracsis plc's (LON:TRCS) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Tracsis

The Last 12 Months Of Insider Transactions At Tracsis

The Independent Non Executive Director Ross Paterson made the biggest insider purchase in the last 12 months. That single transaction was for UK£42k worth of shares at a price of UK£8.75 each. That means that an insider was happy to buy shares at above the current price of UK£5.05. 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.

Tracsis insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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AIM:TRCS Insider Trading Volume December 28th 2024

Tracsis is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Are Tracsis Insiders Buying Or Selling?

We saw some Tracsis insider buying shares in the last three months. Independent Non-Executive Director Tracy Sheedy bought UK£5.0k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

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 isn't picking up on much insider ownership at Tracsis, though insiders do hold about UK£318k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Tracsis Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tracsis insiders are doubting the company. 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. While conducting our analysis, we found that Tracsis has 2 warning signs and it would be unwise to ignore these.