Stock Analysis

Insider Buying: The RS Group plc (LON:RS1) Independent Non-Executive Director Just Bought 93% More Shares

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Potential RS Group plc (LON:RS1) shareholders may wish to note that the Independent Non-Executive Director, Simon Pryce, recently bought UK£236k worth of stock, paying UK£9.07 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 93%.

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RS Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, Lindsley Ruth, sold UK£537k worth of shares at a price of UK£9.39 per share. So we know that an insider sold shares at around the present share price of UK£9.11. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of RS Group shares, than buying. 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!

LSE:RS1 Insider Trading Volume March 17th 2023

I will like RS Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. RS Group insiders own about UK£14m worth of shares. That equates to 0.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At RS Group Tell Us?

It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in RS Group, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in RS Group, you should check out this free report on analyst forecasts for the company.

Of course RS 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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