The Ince Group plc's (LON:INCE) recent UK£2.4m market cap decline means a loss of UK£39k for insiders who bought this year

By
Simply Wall St
Published
February 23, 2022
AIM:INCE
Source: Shutterstock

The recent 11% drop in The Ince Group plc's (LON:INCE) stock could come as a blow to insiders who purchased UK£97k worth of stock at an average buy price of UK£0.49 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£58k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Ince Group

The Last 12 Months Of Insider Transactions At Ince Group

Over the last year, we can see that the biggest insider purchase was by insider Emily Cox for UK£97k worth of shares, at about UK£0.49 per share. That means that an insider was happy to buy shares at above the current price of UK£0.29. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Emily Cox was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
AIM:INCE Insider Trading Volume February 23rd 2022

Ince Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Ince Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Ince Group insiders own 33% of the company, worth about UK£6.5m. 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 Ince Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Ince Group and their transactions don't cause us concern. While we like knowing 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. In terms of investment risks, we've identified 5 warning signs with Ince Group and understanding them should be part of your investment process.

But note: Ince Group 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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