Stock Analysis

Quite a few insiders invested in Intertek Group plc (LON:ITRK) last year which is positive news for shareholders

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LSE:ITRK
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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Intertek Group plc (LON:ITRK), it sends a favourable message to the company's shareholders.

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.

However if you'd rather see where the opportunities and risks are within ITRK's industry, you can check out our analysis on the GB Professional Services industry.

The Last 12 Months Of Insider Transactions At Intertek Group

The Senior Independent Non-Executive Director Graham Allan made the biggest insider purchase in the last 12 months. That single transaction was for UK£85k worth of shares at a price of UK£42.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£37.78). 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. To us, it's very important to consider the price insiders pay for 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.

In the last twelve months Intertek Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE:ITRK Insider Trading Volume September 29th 2022

Intertek 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.

Intertek Group Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Intertek Group. Specifically, Senior Independent Non-Executive Director Graham Allan bought UK£85k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

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. Intertek Group insiders own about UK£19m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Intertek Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Intertek Group insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Intertek Group you should be aware of.

But note: Intertek 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.

Valuation is complex, but we're helping make it simple.

Find out whether Intertek Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About LSE:ITRK

Intertek Group

Intertek Group plc provides quality assurance solutions to various industries in the United Kingdom, the United States, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth3
Past Performance4
Financial Health4
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Established dividend payer with proven track record.