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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 Spectris plc (LON:SXS), 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.
View our latest analysis for Spectris
Spectris Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Andrew Heath for UK£283k worth of shares, at about UK£28.31 per share. That means that an insider was happy to buy shares at above the current price of UK£27.50. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Spectris insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Spectris Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Spectris. Overall, three insiders shelled out UK£360k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Spectris
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. Based on our data, Spectris insiders have about 0.1% of the stock, worth approximately UK£3.1m. I generally like to see higher levels of ownership.
So What Do The Spectris Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Spectris insiders are reasonably well aligned, and optimistic for the 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. For example, Spectris has 2 warning signs (and 1 which is a bit concerning) we think you should know about.