Independent Non-Executive Chairman of the Board of Speedy Hire David James Shearer Buys 12% More Shares

Even if it's not a huge purchase, we think it was good to see that David James Shearer, the Independent Non-Executive Chairman of the Board of Speedy Hire Plc (LON:SDY) recently shelled out UK£42k to buy stock, at 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 12%.

Check out our latest analysis for Speedy Hire

The Last 12 Months Of Insider Transactions At Speedy Hire

In the last twelve months, the biggest single purchase by an insider was when CFO & Executive Director Paul Rayner bought UK£47k worth of shares at a price of UK£0.36 per share. That means that even when the share price was higher than UK£0.30 (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. To us, it's very important to consider the price insiders pay for shares. 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. We note that Paul Rayner was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 575.00k shares for UK£175k. But insiders sold 210.00k shares worth UK£77k. Overall, Speedy Hire insiders were net buyers during the last year. They paid about UK£0.30 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Speedy Hire is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Speedy Hire Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Speedy Hire insiders have about 0.6% of the stock, worth approximately UK£822k. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Speedy Hire Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Speedy Hire insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Speedy Hire. Our analysis shows 2 warning signs for Speedy Hire (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.