Investors who take an interest in Senior plc (LON:SNR) should definitely note that the Independent Chairman, Ian King, recently paid UK£1.18 per share to buy UK£118k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 24%.
The Last 12 Months Of Insider Transactions At Senior
In fact, the recent purchase by Independent Chairman Ian King was not their only acquisition of Senior shares this year. They previously made an even bigger purchase of UK£130k worth of shares at a price of UK£0.86 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£684k for 853.39k shares. But they sold 43.80k shares for UK£40k. In the last twelve months there was more buying than selling by Senior insiders. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Senior Boast High 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. We usually like to see fairly high levels of insider ownership. Based on our data, Senior insiders have about 0.4% of the stock, worth approximately UK£1.7m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Senior Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Senior 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Senior.
But note: Senior may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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