Daniel Dayan Bought 59% More Shares In Bodycote

Investors who take an interest in Bodycote plc (LON:BOY) should definitely note that the Independent Non-Executive Chair, Daniel Dayan, recently paid UK£5.47 per share to buy UK£197k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 59%, potentially signalling some real optimism.

View our latest analysis for Bodycote

Bodycote Insider Transactions Over The Last Year

Notably, that recent purchase by Daniel Dayan is the biggest insider purchase of Bodycote shares that we've seen in the last year. That implies that an insider found the current price of UK£5.59 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Bodycote share holders is that insiders were buying at near the current price.

While Bodycote insiders bought shares during the last year, they didn't sell. 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!

Bodycote 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 Bodycote Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£803k worth of Bodycote stock, about 0.08% of the company. We prefer to see high levels of insider ownership.

So What Do The Bodycote Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. 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 Bodycote insiders are reasonably well aligned, and optimistic for the future. 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 Bodycote 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.