Insider Spends US$125k Buying More Shares In Coats Group

Potential Coats Group plc (LON:COA) shareholders may wish to note that the Group CEO & Executive Director, David Paja, recently bought UK£125k worth of stock, paying UK£0.83 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 50%.

See our latest analysis for Coats Group

Coats Group Insider Transactions Over The Last Year

Notably, that recent purchase by David Paja is the biggest insider purchase of Coats Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.81). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

While Coats Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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 looking at our data, insiders own UK£2.1m worth of Coats Group stock, about 0.2% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Coats 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 Coats Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coats Group. Case in point: We've spotted 3 warning signs for Coats Group you should be aware of, and 1 of these is significant.

Of course Coats 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.

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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.