Insiders Give Up UK£43k As Ceres Power Holdings Stock Drops To UK£1.44

The recent price decline of 13% in Ceres Power Holdings plc's (LON:CWR) stock may have disappointed insiders who bought UK£142.8k worth of shares at an average price of UK£2.05 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£100.1k, which is not what they expected.

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.

View our latest analysis for Ceres Power Holdings

The Last 12 Months Of Insider Transactions At Ceres Power Holdings

Over the last year, we can see that the biggest insider purchase was by Senior Independent Director Julia King for UK£50k worth of shares, at about UK£1.65 per share. That means that an insider was happy to buy shares at above the current price of UK£1.44. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Ceres Power Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£2.05 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Ceres Power Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Ceres Power Holdings. We can see that Senior Independent Director Julia King paid UK£50k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Does Ceres Power Holdings Boast High 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. From looking at our data, insiders own UK£921k worth of Ceres Power Holdings stock, about 0.3% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Does This Data Suggest About Ceres Power Holdings Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Ceres Power Holdings insiders bought more shares in the company. 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 1 warning sign for Ceres Power Holdings that deserve your attention before buying any shares.

Of course Ceres Power Holdings 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 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.