Even if it's not a huge purchase, we think it was good to see that Christopher Rogers, the Independent Non-Executive Director of Sanderson Design Group plc (LON:SDG) recently shelled out UK£59k to buy stock, at UK£1.67 per share. That purchase might not be huge but it did increase their holding by 47%.
Sanderson Design Group Insider Transactions Over The Last Year
Notably, that recent purchase by Christopher Rogers is the biggest insider purchase of Sanderson Design Group shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£1.95. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Sanderson Design Group insiders bought shares during the last year, they didn't sell. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. From what we can see in our data, insiders own only about UK£303k worth of Sanderson Design Group shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Sanderson Design Group Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Sanderson Design Group insiders are reasonably well aligned, and optimistic for the future. 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. While conducting our analysis, we found that Sanderson Design Group has 1 warning sign and it would be unwise to ignore this.
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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