Positive Signs As Multiple Insiders Buy Ceres Power Holdings Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Ceres Power Holdings plc (LON:CWR), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Ceres Power Holdings Insider Transactions Over The Last Year

The Senior Independent Director Julia King made the biggest insider purchase in the last 12 months. That single transaction was for UK£50k worth of shares at a price of UK£1.65 each. That means that even when the share price was higher than UK£1.31 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Ceres Power Holdings insiders bought shares during the last year, they didn't sell. Their average price was about UK£1.28. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ceres Power Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap 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. We usually like to see fairly high levels of insider ownership. Our data suggests Ceres Power Holdings insiders own 0.3% of the company, worth about UK£793k. 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.

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

It doesn't really mean much that no insider has traded Ceres Power Holdings shares in the last quarter. 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. 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 them makes us a bit uncomfortable.

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.