Stock Analysis

Insiders who purchased Springfield Properties Plc (LON:SPR) stock last year recover some losses which currently stand at UK£31.3

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Insiders who bought UK£292k worth of Springfield Properties Plc (LON:SPR) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, total losses seen by insiders are still UK£31.3 since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Springfield Properties

Springfield Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Part Time Executive Chairman Alexander Adam bought UK£173k worth of shares at a price of UK£0.78 per share. That means that an insider was happy to buy shares at around the current price of UK£0.81. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Springfield Properties share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 360.65k shares worth UK£292k. On the other hand they divested 47.05k shares, for UK£38k. In total, Springfield Properties insiders bought more than they sold over the last year. 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!

AIM:SPR Insider Trading Volume March 31st 2023

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Have Springfield Properties Insiders Traded Recently?

In the last three months, insiders sold UK£38k. But that was only a smidgen more than the UK£38k worth of buying. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

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. Springfield Properties insiders own 41% of the company, currently worth about UK£39m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Springfield Properties Insider Transactions Indicate?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Springfield Properties insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Springfield Properties has 1 warning sign and it would be unwise to ignore it.

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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