Favourable Signals For SIG: Numerous Insiders Acquired Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in SIG plc's (LON:SHI) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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SIG Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Pim R. Vervaat for UK£45k worth of shares, at about UK£0.089 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While SIG insiders bought shares during the last year, they didn't sell. Their average price was about UK£0.10. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for SIG

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.

SIG Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at SIG. We can see that CEO & Director Pim R. Vervaat paid UK£45k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does SIG Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at SIG, though insiders do hold about UK£691k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At SIG Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more SIG stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - SIG has 1 warning sign we think you should be aware of.

Of course SIG 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.