Even if it’s not a huge purchase, we think it was good to see that Christopher Michael Stone, the Non-Executive Chairman of NCC Group plc (LON:NCC) recently shelled out UK£60k to buy stock, at UK£1.38 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 13%.
View our latest analysis for NCC Group
Notably, that recent purchase by Christopher Michael Stone is the biggest insider purchase of NCC Group shares that we’ve seen in the last year. That implies that an insider found the current price of UK£1.42 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
While NCC Group insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NCC Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that NCC Group insiders own 1.3% of the company, worth about UK£5.8m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that NCC Group insiders are expecting a bright future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for NCC Group that deserve your attention before buying any shares.
