In the last year, numerous insiders have significantly increased their holdings of shares NCC Group plc (LON:NCC). This is encouraging because it shows that insiders are becoming more optimistic about the company’s prospects.
While insider transactions aren’t the most important thing when it comes to long-term investing, we think it’s foolish to ignore insider transactions entirely.
Check out our latest analysis for NCC Group
The last 12 months of insider transactions at NCC Group
Non-Executive Chairman Christopher Michael Stone made the biggest insider purchase in the last 12 months. This single transaction involved shares worth £499,000 at a price of £0.91 each. Although the purchase was made at a significantly lower price than the current price (£1.15), we still consider insider buying to be positive. While this suggests insiders believe the stock is undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
NCC Group insiders may have bought shares in the last year, but not sold any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the graphic, you will see all individual transactions, including share price, individual transaction and date!
There are always a lot of stocks that insiders are buying. So if that suits your style, you can check or take a look at each inventory individually free List of companies. (Note: insiders bought them).
NCC Group insiders recently bought shares
We’ve seen some NCC Group insiders buying shares in the last three months. Independent non-executive director Lynn Fordham bought shares worth £26,000 during this time. It’s great to see that insiders are only buying, not selling. However, in this case, the recently invested amount is quite small.
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders own a significant number of shares in the company. According to our information, NCC Group insiders own about UK£688k worth of shares. The level of insider ownership is noticeably low and not very encouraging.
So what do NCC Group’s insider transactions suggest?
Our data shows that there was some small insider buying but no selling in the last three months. However, the purchases were not large. But insiders have shown more interest in the stock over the last year. While we’re not worried about the insider transactions, we would be happier if they owned more NCC Group shares. So these insider transactions can help us form a thesis about the stock, but it’s also worth knowing the risks this company faces. Case in point: We discovered it 1 warning sign for NCC Group You should be aware of that.
Naturally NCC Group may not be the best stock to buy. Maybe you would like to see this free Collection of high quality companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.