Insider Spends UK£6.8m Buying More Shares In On the Beach Group

On the Beach Group plc (LON:OTB) shareholders (or potential shareholders) will be happy to see that the Founder & Non-Executive Director, Simon Cooper, recently bought a whopping UK£6.8m worth of stock, at a price of UK£2.28. Not only is that a big swing, but it increased their holding size by 46%, which is definitely great to see.

View our latest analysis for On the Beach Group

On the Beach Group Insider Transactions Over The Last Year

Notably, that recent purchase by Simon Cooper is the biggest insider purchase of On the Beach Group shares that we've seen in the last year. That implies that an insider found the current price of UK£2.39 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for On the Beach Group share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 3.10m shares for UK£7.0m. On the other hand they divested 66.14k shares, for UK£101k. In total, On the Beach Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does On the Beach Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. On the Beach Group insiders own about UK£31m worth of shares. That equates to 7.8% of the company. 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 On the Beach Group Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of On the Beach Group we think they are probably pretty confident of a bright future. 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. You'd be interested to know, that we found 1 warning sign for On the Beach Group and we suggest you have a look.

But note: On the Beach Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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