Insider Buyers Lose Additional UK£61k As Staffline Group Dips To UK£38m

Insiders who acquired UK£224k worth of Staffline Group plc's (LON:STAF) stock at an average price of UK£0.35 in the past 12 months may be dismayed by the recent 12% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£163k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Staffline Group

Staffline Group Insider Transactions Over The Last Year

The Interim Non-Executive Chair Thomas Spain made the biggest insider purchase in the last 12 months. That single transaction was for UK£101k worth of shares at a price of UK£0.36 each. That means that even when the share price was higher than UK£0.26 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Thomas Spain was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 639.01k shares for UK£224k. On the other hand they divested 222.29k shares, for UK£79k. In the last twelve months there was more buying than selling by Staffline Group insiders. 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!

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.

Staffline Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Staffline Group. insider Martina McKenzie shelled out UK£15k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Staffline Group Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Staffline Group insiders own 2.0% of the company, worth about UK£782k. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About Staffline Group Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Staffline Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Staffline Group. For example - Staffline Group has 3 warning signs we think you should be aware of.

Of course Staffline Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.