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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Speedy Hire Plc (LON:SDY), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Speedy Hire
The Last 12 Months Of Insider Transactions At Speedy Hire
In fact, the recent purchase by Paul Rayner was the biggest purchase of Speedy Hire shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£0.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Speedy Hire insiders decided to buy shares at close to current prices. Notably Paul Rayner was also the biggest seller.
In the last twelve months insiders purchased 425.00k shares for UK£133k. On the other hand they divested 210.00k shares, for UK£77k. In total, Speedy Hire insiders bought more than they sold over the last year. They paid about UK£0.31 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Have Speedy Hire Insiders Traded Recently?
In the last quarter we saw insiders spend UK£77k on shares. But that was only a smidgen more than the UK£77k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Speedy Hire Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Speedy Hire insiders have about 0.6% of the stock, worth approximately UK£925k. We consider this fairly low insider ownership.