Have Insiders Been Buying Sanne Group plc (LON:SNN) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Sanne Group plc (LON:SNN).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Sanne Group

The Last 12 Months Of Insider Transactions At Sanne Group

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Mel Carvill bought UK£52k worth of shares at a price of UK£5.20 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£5.81. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Sanne Group insiders decided to buy shares at close to current prices.

In the last twelve months Sanne Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders at Sanne Group Have Bought Stock Recently

Over the last quarter, Sanne Group insiders have spent a meaningful amount on shares. Overall, two insiders shelled out UK£80k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership of Sanne Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sanne Group insiders own 1.1% of the company, worth about UK£9.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sanne Group Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Sanne Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sanne Group. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Sanne Group.

But note: Sanne Group 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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