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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 Cohort plc's (LON:CHRT) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Cohort
Cohort Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Senior Independent Director Peter Lynas for UK£82k worth of shares, at about UK£5.45 per share. We do like to see buying, but this purchase was made at well below the current price of UK£10.80. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 23.53k shares for UK£130k. On the other hand they divested 8.34k shares, for UK£62k. Overall, Cohort insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Cohort 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.
Does Cohort Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cohort insiders own 25% of the company, worth about UK£123m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Cohort Insiders?
The fact that there have been no Cohort insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Cohort insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 1 warning sign for Cohort you should know about.