Trade Alert: The Independent Non-Executive Chairman Of GLI Finance Limited (LON:GLIF), Patrick Anthony Firth, Has Just Spent UK£201k Buying 32% More Shares

Investors who take an interest in GLI Finance Limited (LON:GLIF) should definitely note that the Independent Non-Executive Chairman, Patrick Anthony Firth, recently paid UK£2.25 per share to buy UK£201k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 32%.

View our latest analysis for GLI Finance

GLI Finance Insider Transactions Over The Last Year

In fact, the recent purchase by Patrick Anthony Firth was the biggest purchase of GLI Finance shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.028). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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 GLI Finance insiders bought shares during the last year, they didn't sell. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£375k worth of GLI Finance stock, about 4.5% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At GLI Finance Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that GLI Finance insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GLI Finance. For instance, we've identified 2 warning signs for GLI Finance (1 shouldn't be ignored) you should be aware of.

But note: GLI Finance 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, 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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