Surface Transforms Insiders May Regret Not Buying More, Market Cap Hits UK£33m

Surface Transforms Plc (LON:SCE) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 29% resulting in a UK£7.5m addition to the company’s market value. As a result, the stock they originally bought for UK£68.3k is now worth UK£341.2k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Surface Transforms

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Kevin Johnson for UK£38k worth of shares, at about UK£0.0038 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.025. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Surface Transforms insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.0051. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Surface Transforms

Surface Transforms is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Surface Transforms Have Bought Stock Recently

There was some insider buying at Surface Transforms over the last quarter. Insiders purchased UK£30k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Surface Transforms Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Surface Transforms insiders own 9.9% of the company, worth about UK£3.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Surface Transforms Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. 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. Case in point: We've spotted 4 warning signs for Surface Transforms you should be aware of, and 3 of them are a bit unpleasant.

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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.

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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.