Christopher Sellers Bought 11% More Shares In Literacy Capital

Investors who take an interest in Literacy Capital plc (LON:BOOK) should definitely note that the Independent Non-Executive Director, Christopher Sellers, recently paid UK£3.82 per share to buy UK£191k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.

Our free stock report includes 1 warning sign investors should be aware of before investing in Literacy Capital. Read for free now.

Literacy Capital Insider Transactions Over The Last Year

Notably, that recent purchase by Christopher Sellers is the biggest insider purchase of Literacy Capital shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£3.90. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Christopher Sellers was the only individual insider to buy 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!

See our latest analysis for Literacy Capital

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 Literacy Capital Boast High Insider Ownership?

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 Literacy Capital insiders own 61% of the company, worth about UK£144m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Literacy Capital Tell Us?

It's certainly positive to see the recent insider purchase. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Literacy Capital. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Literacy Capital. In terms of investment risks, we've identified 1 warning sign with Literacy Capital and understanding this should be part of your investment process.

Of course Literacy Capital may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.