Insiders who purchased RBG Holdings plc (LON:RBGP) earlier this year lose an additional UK£83k as the stock sinks to UK£0.45

The recent price decline of 10% in RBG Holdings plc's (LON:RBGP) stock may have disappointed insiders who bought UK£254k worth of shares at an average price of UK£0.66 in 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£171k, 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.

View our latest analysis for RBG Holdings

RBG Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Nicola Foulston for UK£162k worth of shares, at about UK£0.66 per share. That means that an insider was happy to buy shares at above the current price of UK£0.45. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Nicola Foulston.

Nicola Foulston purchased 385.00k shares over the year. The average price per share was UK£0.66. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

RBG Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does RBG Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RBG Holdings insiders own about UK£15m worth of shares. That equates to 34% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The RBG Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded RBG Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in RBG Holdings and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for RBG Holdings and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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.