Surface Transforms Insiders Miss 11% Gain After Offloading Stock

While Surface Transforms Plc (LON:SCE) shareholders have had a good week with the stock up 11%, insiders can't say the same having sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Surface Transforms

The Last 12 Months Of Insider Transactions At Surface Transforms

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Cunningham, sold UK£302k worth of shares at a price of UK£0.33 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£0.10. So it is hard to draw any strong conclusion from it.

All up, insiders sold more shares in Surface Transforms than they bought, over the last year. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of Surface Transforms shares, worth about UK£6.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Surface Transforms Tell Us?

The fact that there have been no Surface Transforms insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Surface Transforms insiders. The modest level of insider ownership is, at least, some comfort. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Surface Transforms you should know about.

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.

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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.