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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 Gaming Realms plc's (LON:GMR) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Gaming Realms
Gaming Realms Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non Executive Director Mark Blandford for UK£180k worth of shares, at about UK£0.35 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£0.39. 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.
Gaming Realms insiders may have bought shares in the last year, but they didn't sell any. 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!
Gaming Realms 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
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Gaming Realms insiders own 20% of the company, worth about UK£23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Gaming Realms Insiders?
It doesn't really mean much that no insider has traded Gaming Realms shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Gaming Realms insiders are doubting the company, and they do own shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Gaming Realms.
But note: Gaming Realms may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.