Michael Roney Is The Non-Executive Chairman of Grafton Group plc (LON:GFTU) And They Just Picked Up 35% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Grafton Group plc (LON:GFTU) Non-Executive Chairman, Michael Roney, recently bought UK£75k worth of stock, for UK£6.25 per share. That purchase might not be huge but it did increase their holding by 35%.

However if you'd rather see where the opportunities and risks are within GFTU's industry, you can check out our analysis on the GB Trade Distributors industry.

Grafton Group Insider Transactions Over The Last Year

Notably, that recent purchase by Michael Roney is the biggest insider purchase of Grafton Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£6.83. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Grafton Group insiders decided to buy shares at close to current prices.

In the last twelve months Grafton Group insiders were buying shares, but not selling. 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!

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 Grafton Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Grafton Group insiders own 10% of the company, currently worth about UK£157m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Grafton Group Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Grafton Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Grafton Group.

Of course Grafton Group 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.

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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.