Several Insiders Invested In TMT Investments Flagging Positive News

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in TMT Investments PLC's (LON:TMT) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At TMT Investments

In the last twelve months, the biggest single purchase by an insider was when Head of Business Development Alexander Morgulchik bought US$155k worth of shares at a price of US$2.75 per share. That means that an insider was happy to buy shares at above the current price of US$2.63. 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. To us, it's very important to consider the price insiders pay for 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.

In the last twelve months insiders purchased 76.51k shares for US$208k. But they sold 20.12k shares for US$53k. Overall, TMT Investments insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for TMT Investments

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have TMT Investments Insiders Traded Recently?

In the last quarter there were insider sales totalling US$26k. However that only slightly eclipses the US$26k worth of purchases. Ultimately the overall selling isn't enough to tell us much.

Insider Ownership Of TMT 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that TMT Investments insiders own 80% of the company, worth about US$66m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The TMT Investments Insider Transactions Indicate?

Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like TMT Investments insiders think the business has merit. 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. Our analysis shows 3 warning signs for TMT Investments (2 are potentially serious!) and we strongly recommend you look at them before investing.

But note: TMT 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.