Investors who take an interest in ITM Power Plc (LON:ITM) should definitely note that the CEO & Executive Director, Graham Cooley, recently paid UK£4.00 per share to buy UK£250k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.8%.
ITM Power Insider Transactions Over The Last Year
Notably, that recent purchase by Graham Cooley is the biggest insider purchase of ITM Power shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of UK£4.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months ITM Power insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of ITM Power
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. ITM Power insiders own 4.7% of the company, currently worth about UK£135m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The ITM Power Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about ITM Power. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for ITM Power that deserve your attention before buying any shares.
Of course ITM Power 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, but not derivative transactions.
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.
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