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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 Bango PLC's (LON:BGO) case, it's fantastic 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 Bango
The Last 12 Months Of Insider Transactions At Bango
The Independent Non-Executive Director Frank Bury made the biggest insider purchase in the last 12 months. That single transaction was for UK£52k worth of shares at a price of UK£1.23 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.07). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Bango 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!
Bango 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.
Are Bango Insiders Buying Or Selling?
We saw some Bango insider buying shares in the last three months. General Counsel & Company Secretary Rachel Ellis shelled out UK£4.2k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Bango Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 12% of Bango shares, worth about UK£9.7m. 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 Bango Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Bango 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Bango.