Strip Tinning Holdings Insider Confidence Rewarded, Stock Hits UK£8.2m Market Cap

Strip Tinning Holdings plc (LON:STG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a UK£1.5m addition to the company’s market value. In other words, the original UK£134.8k purchase is now worth UK£150.8k.

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.

See our latest analysis for Strip Tinning Holdings

The Last 12 Months Of Insider Transactions At Strip Tinning Holdings

In the last twelve months, the biggest single purchase by an insider was when Group CEO & Director Richard Barton bought UK£50k worth of shares at a price of UK£0.40 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.46), 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.

In the last twelve months Strip Tinning Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of Strip Tinning Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Strip Tinning Holdings insiders own 52% of the company, worth about UK£4.3m. 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 Strip Tinning Holdings Tell Us?

The fact that there have been no Strip Tinning Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Strip Tinning Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Strip Tinning Holdings. Every company has risks, and we've spotted 3 warning signs for Strip Tinning Holdings (of which 1 can't be ignored!) you should know about.

Of course Strip Tinning Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.