David James Shearer Bought 18% More Shares In Speedy Hire

Whilst it may not be a huge deal, we thought it was good to see that the Speedy Hire Plc (LON:SDY) Independent Non-Executive Chairman of the Board, David James Shearer, recently bought UK£70k worth of stock, for UK£0.28 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 18%.

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Speedy Hire Insider Transactions Over The Last Year

Notably, that recent purchase by David James Shearer is the biggest insider purchase of Speedy Hire shares that we've seen in the last year. That implies that an insider found the current price of UK£0.29 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Speedy Hire share holders is that insiders were buying at near the current price.

Speedy Hire insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Speedy Hire

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

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. Based on our data, Speedy Hire insiders have about 0.7% of the stock, worth approximately UK£959k. We consider this fairly low insider ownership.

So What Does This Data Suggest About Speedy Hire Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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 Speedy Hire insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Speedy Hire you should be aware of, and 1 of them is a bit unpleasant.

Of course Speedy Hire 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.