Independent Non-Executive Chairman of Ceres Power Holdings Warren Finegold Buys 200% More Shares

Even if it's not a huge purchase, we think it was good to see that Warren Finegold, the Independent Non-Executive Chairman of Ceres Power Holdings plc (LON:CWR) recently shelled out UK£45k to buy stock, at UK£2.25 per share. Even though that isn't a massive buy, it did increase their holding by 200%, which is arguably a good sign.

View our latest analysis for Ceres Power Holdings

Ceres Power Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Warren Finegold is the biggest insider purchase of Ceres Power Holdings shares that we've seen in the last year. That means that even when the share price was higher than UK£1.80 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Ceres Power Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Ceres Power Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own UK£967k worth of Ceres Power Holdings stock, about 0.3% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Ceres Power Holdings Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Ceres Power Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ceres Power Holdings. Case in point: We've spotted 2 warning signs for Ceres Power Holdings you should be aware of, and 1 of these doesn't sit too well with us.

But note: Ceres Power Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.