Independent Non-Executive Director of Literacy Capital Christopher Sellers Buys 8.1% More Shares

Investors who take an interest in Literacy Capital plc (LON:BOOK) should definitely note that the Independent Non-Executive Director, Christopher Sellers, recently paid UK£4.91 per share to buy UK£160k worth of the stock. Although the purchase only increased their holding by 8.1%, it is still a solid purchase in our view.

Check out our latest analysis for Literacy Capital

The Last 12 Months Of Insider Transactions At Literacy Capital

Notably, that recent purchase by Christopher Sellers is the biggest insider purchase of Literacy Capital shares that we've seen in the last year. That implies that an insider found the current price of UK£5.03 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Literacy Capital share holders is that an insider was buying at near the current price. Christopher Sellers was the only individual insider to buy during the last year.

Christopher Sellers purchased 50.00k shares over the year. The average price per share was UK£4.95. The chart below shows insider transactions (by companies and individuals) over the last year. 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).

Does Literacy Capital Boast High Insider Ownership?

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. Literacy Capital insiders own 64% of the company, currently worth about UK£193m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Literacy Capital Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Literacy Capital insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: Literacy Capital 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 of direct interests only, but not derivative transactions or indirect interests.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.