Insiders Buying Totally Might Wish They Invested More, Stock Gains 26%

Insiders who bought Totally plc (LON:TLY) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£2.7m as a result of the stock's 26% gain over the same period. As a result, the stock they originally bought for UK£109.2k is now worth UK£132.4k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Totally

The Last 12 Months Of Insider Transactions At Totally

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Simon Stilwell bought UK£61k worth of shares at a price of UK£0.062 per share. That means that an insider was happy to buy shares at around the current price of UK£0.066. 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 Totally share holders is that insiders were buying at near the current price.

In the last twelve months Totally insiders were buying shares, but not selling. Their average price was about UK£0.054. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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 appears that Totally insiders own 21% of the company, worth about UK£2.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Totally Insiders?

It doesn't really mean much that no insider has traded Totally shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Totally and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Totally has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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.