Stock Analysis

Insider Buying: The Spirax-Sarco Engineering plc (LON:SPX) Independent Non-Executive Director Just Bought 16% More Shares

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Potential Spirax-Sarco Engineering plc (LON:SPX) shareholders may wish to note that the Independent Non-Executive Director, Jane Kingston, recently bought UK£99k worth of stock, paying UK£111 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

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The Last 12 Months Of Insider Transactions At Spirax-Sarco Engineering

In fact, the recent purchase by Independent Non-Executive Director Jane Kingston was not their only acquisition of Spirax-Sarco Engineering shares this year. They previously made an even bigger purchase of UK£198k worth of shares at a price of UK£125 per share. That means that even when the share price was higher than UK£111 (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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Spirax-Sarco Engineering insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£106. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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:SPX Insider Trading Volume March 18th 2023

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.

Insider Ownership Of Spirax-Sarco Engineering

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Spirax-Sarco Engineering shares, worth about UK£13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Spirax-Sarco Engineering Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Spirax-Sarco Engineering we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spirax-Sarco Engineering. In terms of investment risks, we've identified 1 warning sign with Spirax-Sarco Engineering and understanding this should be part of your investment process.

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, but not derivative transactions.

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