Potential Clarkson PLC (LON:CKN) shareholders may wish to note that the Non-Executive Chairman, William Gennydd Thomas, recently bought UK£100k worth of stock, paying UK£27.52 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 174%.

Check out our latest analysis for Clarkson

The Last 12 Months Of Insider Transactions At Clarkson

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Laurence Hollingworth for UK£112k worth of shares, at about UK£22.30 per share. That implies that an insider found the current price of UK£27.50 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Clarkson share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid UK£211k for 8.63k shares. On the other hand they divested 3.09k shares, for UK£72k. In the last twelve months there was more buying than selling by Clarkson insiders. 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!

Clarkson is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. It appears that Clarkson insiders own 2.2% of the company, worth about UK£18m. 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 Clarkson Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Clarkson 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. For example - Clarkson has 1 warning sign we think you should be aware of.

Of course Clarkson may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.