Character Group Insiders May Regret Not Buying More, Market Cap Hits UK£60m

The Character Group plc (LON:CCT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10.0%, resulting in a UK£5.4m rise in the company's market capitalisation, translating to a gain of 18% on their initial investment. In other words, the original UK£323.0k purchase is now worth UK£381.5k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Character Group

The Last 12 Months Of Insider Transactions At Character Group

In the last twelve months, the biggest single purchase by an insider was when Founder Kirankumar Shah bought UK£188k worth of shares at a price of UK£2.70 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£3.19), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid UK£323k for 119.60k shares. But insiders sold 119.60k shares worth UK£323k. In total, Character Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Character Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Character Group insiders own 21% of the company, worth about UK£13m. 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 Character Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Character Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Character Group and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Character Group (1 shouldn't be ignored!) that we believe deserve your full attention.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.