Insider Buying: The Polarean Imaging plc (LON:POLX) Independent Chairman Just Bought 6.6% More Shares

Investors who take an interest in Polarean Imaging plc (LON:POLX) should definitely note that the Independent Chairman, Jonathan Allis, recently paid UK£0.60 per share to buy UK£96k worth of the stock. Although the purchase only increased their holding by 6.6%, it is still a solid purchase in our view.

Check out our latest analysis for Polarean Imaging

The Last 12 Months Of Insider Transactions At Polarean Imaging

In fact, the recent purchase by Jonathan Allis was the biggest purchase of Polarean Imaging shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£0.66. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Polarean Imaging share holders is that insiders were buying at near the current price.

Polarean Imaging insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership of Polarean Imaging

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of Polarean Imaging shares, worth about UK£17m. 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 Polarean Imaging Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Polarean Imaging shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 3 warning signs for Polarean Imaging you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course Polarean Imaging 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, 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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