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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 The Conygar Investment Company PLC (LON:CIC), 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.
Check out our latest analysis for Conygar Investment
The Last 12 Months Of Insider Transactions At Conygar Investment
The CEO & Executive Director Robert Thomas Ware made the biggest insider purchase in the last 12 months. That single transaction was for UK£74k worth of shares at a price of UK£0.86 each. That means that even when the share price was higher than UK£0.78 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Robert Thomas Ware was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 171.40k shares for UK£147k. On the other hand they divested 86.40k shares, for UK£74k. In total, Conygar Investment insiders bought more than they sold over the last year. 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!
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.
Conygar Investment Insiders Bought Stock Recently
There was some insider buying at Conygar Investment over the last quarter. CEO & Executive Director Robert Thomas Ware bought UK£8.0k 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. 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 20% of Conygar Investment shares, worth about UK£9.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.