Hopeful Week For Insiders Who Bought UK£785.0k Of Creo Medical Group Stock

Insiders who bought UK£785.0k worth of Creo Medical Group PLC (LON:CREO) stock in the last year recovered part of their losses as the stock rose by 14% last week. However, total losses seen by insiders are still UK£228k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Creo Medical Group

The Last 12 Months Of Insider Transactions At Creo Medical Group

In the last twelve months, the biggest single purchase by an insider was when Chairman Kevin Crofton bought UK£700k worth of shares at a price of UK£0.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.17). 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.

In the last twelve months insiders purchased 3.30m shares for UK£785k. On the other hand they divested 174.74k shares, for UK£35k. In total, Creo Medical Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Creo Medical Group Insiders Bought Stock Recently

At Creo Medical Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought UK£785k worth of shares. On the other hand, CFO & Executive Director Richard Rees netted UK£35k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership

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. We usually like to see fairly high levels of insider ownership. Our data suggests Creo Medical Group insiders own 4.8% of the company, worth about UK£3.3m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Creo Medical Group Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Creo Medical Group stock. 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 - Creo Medical Group has 4 warning signs we think you should be aware of.

But note: Creo Medical 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 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.