It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in accesso Technology Group plc (LON:ACSO).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
accesso Technology Group Insider Transactions Over The Last Year
Senior Independent Director Karen Slatford made the biggest insider purchase in the last 12 months. That single transaction was for UK£100k worth of shares at a price of UK£8.45 each. That means that even when the share price was higher than UK£3.65 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While accesso Technology Group insiders bought shares last year, they didn’t sell. Their average price was about UK£6.56. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
accesso Technology Group Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at accesso Technology Group. We can see that Non-Executive Chairman William Russell paid UK£69k for shares in the company. No-one sold. That shows some optimism about the company’s future.
Does accesso Technology 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that accesso Technology Group insiders own 5.3% of the company, worth about UK£5.3m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At accesso Technology Group Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on accesso Technology Group stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for accesso Technology Group.
But note: accesso Technology Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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