CEO & Executive Director of Surface Transforms Picks Up 214% More Stock

Even if it's not a huge purchase, we think it was good to see that Kevin Johnson, the CEO & Executive Director of Surface Transforms Plc (LON:SCE) recently shelled out UK£38k to buy stock, at UK£0.0038 per share. Even though that isn't a massive buy, it did increase their holding by 214%, which is arguably a good sign.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Surface Transforms Insider Transactions Over The Last Year

In fact, the recent purchase by Kevin Johnson was the biggest purchase of Surface Transforms shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (UK£0.0055), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Surface Transforms

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Surface Transforms

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Surface Transforms insiders own about UK£816k worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Surface Transforms Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Surface Transforms insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Surface Transforms is showing 5 warning signs in our investment analysis, and 4 of those are significant...

But note: Surface Transforms 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.