Independent Non-Executive Chairman of CVS Group David Wilton Buys 38% More Shares

Those following along with CVS Group plc (LON:CVSG) will no doubt be intrigued by the recent purchase of shares by David Wilton, Independent Non-Executive Chairman of the company, who spent a stonking UK£2.6m on stock at an average price of UK£1,052. Not only is that a big swing, but it increased their holding size by 38%, which is definitely great to see.

See our latest analysis for CVS Group

CVS Group Insider Transactions Over The Last Year

Notably, that recent purchase by David Wilton is the biggest insider purchase of CVS Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£10.08). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months CVS Group insiders were buying shares, but not selling. Their average price was about UK£824. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

CVS Group 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

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests CVS Group insiders own 0.2% of the company, worth about UK£1.6m. We consider this fairly low insider ownership.

What Might The Insider Transactions At CVS Group Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. 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 CVS Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CVS Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of CVS Group.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com