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On the Beach Group plc (LON:OTB) shareholders (or potential shareholders) will be happy to see that the Founder & Non-Executive Director, Simon Cooper, recently bought a whopping UK£6.8m worth of stock, at a price of UK£2.28. Not only is that a big swing, but it increased their holding size by 46%, which is definitely great to see.
See our latest analysis for On the Beach Group
On the Beach Group Insider Transactions Over The Last Year
In fact, the recent purchase by Simon Cooper was the biggest purchase of On the Beach Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£2.39 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the On the Beach Group insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 3.10m shares worth UK£7.0m. On the other hand they divested 66.14k shares, for UK£101k. In the last twelve months there was more buying than selling by On the Beach Group insiders. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does On the Beach Group Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 7.8% of On the Beach Group shares, worth about UK£31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At On the Beach Group Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of On the Beach Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of On the Beach Group.