Independent Non-Executive Chairman of Secure Trust Bank James R. Brown Buys 58% More Shares

Potential Secure Trust Bank PLC (LON:STB) shareholders may wish to note that the Independent Non-Executive Chairman, James R. Brown, recently bought UK£103k worth of stock, paying UK£5.98 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 58%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At Secure Trust Bank

In fact, the recent purchase by James R. Brown was the biggest purchase of Secure Trust Bank shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£5.94). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Secure Trust Bank insiders bought shares during the last year, they didn't sell. They paid about UK£6.64 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Secure Trust Bank

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

Does Secure Trust Bank Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Secure Trust Bank insiders own 0.7% of the company, worth about UK£780k. I generally like to see higher levels of ownership.

So What Do The Secure Trust Bank Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Secure Trust Bank stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Secure Trust Bank (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.