CEO & Executive Director of Tavistock Investments Picks Up 1.6% More Stock

Even if it's not a huge purchase, we think it was good to see that Brian Raven, the CEO & Executive Director of Tavistock Investments Plc (LON:TAVI) recently shelled out UK£43k to buy stock, at UK£0.037 per share. Although the purchase is not a big one, increasing their shareholding by only 1.6%, it can be interpreted as a good sign.

See our latest analysis for Tavistock Investments

The Last 12 Months Of Insider Transactions At Tavistock Investments

In fact, the recent purchase by Brian Raven was the biggest purchase of Tavistock Investments shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£0.037. Of course they may have changed their mind. But this suggests they are optimistic. 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 Tavistock Investments share holders is that an insider was buying at near the current price. Brian Raven was the only individual insider to buy shares in the last twelve months.

Brian Raven bought 1.97m shares over the last 12 months at an average price of UK£0.037. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Tavistock Investments 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 Of Tavistock Investments

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. It's great to see that Tavistock Investments insiders own 45% of the company, worth about UK£7.7m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Tavistock Investments Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Tavistock Investments insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Tavistock Investments has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about.

But note: Tavistock Investments 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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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.