Insider Spends UK£40k Buying More Shares In Gym Group

Whilst it may not be a huge deal, we thought it was good to see that the The Gym Group plc (LON:GYM) Senior Independent Non-Executive Director, Elaine O’Donnell, recently bought UK£40k worth of stock, for UK£1.62 per share. While that isn't the hugest buy, it actually boosted their shareholding by 125%, which is good to see.

View our latest analysis for Gym Group

Gym Group Insider Transactions Over The Last Year

Notably, that recent purchase by Elaine O’Donnell is the biggest insider purchase of Gym Group shares that we've seen in the last year. That implies that an insider found the current price of UK£1.64 per share to be enticing. 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. 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 Gym Group share holders is that an insider was buying at near the current price. Elaine O’Donnell was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Gym Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Gym Group insiders have about 1.1% of the stock, worth approximately UK£3.1m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Gym Group Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Gym Group insiders are doubting the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.