Secure Trust Bank Reaches UK£185m Market Cap Benefiting Insider Stock Buying

Insiders who bought Secure Trust Bank PLC (LON:STB) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£19m as a result of the stock's 11% gain over the same period. Put another way, the original UK£312.2k acquisition is now worth UK£457.6k.

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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Secure Trust Bank Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman James R. Brown bought UK£103k worth of shares at a price of UK£5.98 per share. We do like to see buying, but this purchase was made at well below the current price of UK£9.72. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid UK£312k for 47.08k shares. On the other hand they divested 6.56k shares, for UK£40k. In the last twelve months there was more buying than selling by Secure Trust Bank insiders. Their average price was about UK£6.63. It is certainly positive to see 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 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!

See our latest analysis for Secure Trust Bank

Secure Trust Bank is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Secure Trust Bank Have Bought Stock Recently

We saw some Secure Trust Bank insider buying shares in the last three months. In that period insiders spent UK£70k on shares. However, CFO & Executive Director Rachel Lawrence netted UK£40k for sales. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Secure Trust Bank insiders own 0.9% of the company, worth about UK£1.7m. We consider this fairly low insider ownership.

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

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Secure Trust Bank stock. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Secure Trust Bank you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.