Trade Alert: The Non-Executive Director Of The Rank Group Plc (LON:RNK), Hong Cheong Tang, Has Just Spent UK£63k Buying 54% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the The Rank Group Plc (LON:RNK) Non-Executive Director, Hong Cheong Tang, recently bought UK£63k worth of stock, for UK£0.90 per share. Even though that isn't a massive buy, it did increase their holding by 54%, which is arguably a good sign.

Check out our latest analysis for Rank Group

Rank Group Insider Transactions Over The Last Year

Notably, that recent purchase by Non-Executive Director Hong Cheong Tang was not the only time they bought Rank Group shares this year. Earlier in the year, they paid UK£1.11 per share in a UK£66k purchase. We do like to see buying, but this purchase was made at well below the current price of UK£1.47. 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.

Rank Group insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.96 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Rank Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Rank Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Rank Group insiders own 0.1% of the company, worth about UK£1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

So What Do The Rank Group Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Rank Group insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with Rank Group and understanding them should be part of your investment process.

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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This article by Simply Wall St is general in nature. 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.
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