Secure Trust Bank Independent Non-Executive Chairman Acquires 40% More Stock

Investors who take an interest in Secure Trust Bank PLC (LON:STB) should definitely note that the Independent Non-Executive Chairman, James Raymond Brown, recently paid UK£11.70 per share to buy UK£234k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 40%.

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Secure Trust Bank Insider Transactions Over The Last Year

Notably, that recent purchase by James Raymond Brown is the biggest insider purchase of Secure Trust Bank shares that we've seen in the last year. That implies that an insider found the current price of UK£11.80 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Secure Trust Bank insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid UK£446k for 55.20k shares. But insiders sold 6.56k shares worth UK£40k. In total, Secure Trust Bank insiders bought more than they sold over the last year. Their average price was about UK£8.08. We don't deny that it is nice to see insiders buying stock 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 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.0m worth of Secure Trust Bank stock, about 0.9% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Secure Trust Bank Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Secure Trust Bank insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Secure Trust Bank. Every company has risks, and we've spotted 2 warning signs for Secure Trust Bank 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.