Great news for ConvaTec Group Plc (LON:CTEC): Insiders acquired stock in large numbers last year

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in ConvaTec Group Plc's (LON:CTEC) instance, it's good news for shareholders.

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.

See our latest analysis for ConvaTec Group

ConvaTec Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group CFO & Director Jonathan Mason for UK£64k worth of shares, at about UK£2.27 per share. That implies that an insider found the current price of UK£2.37 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

While ConvaTec Group insiders bought shares during the last year, they didn't sell. 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!

ConvaTec Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At ConvaTec Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at ConvaTec Group. Group CFO & Director Jonathan Mason spent UK£64k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that ConvaTec Group insiders own about UK£4.3m worth of shares (which is 0.09% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At ConvaTec Group Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that ConvaTec Group insiders are reasonably well aligned, and optimistic for the future. 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. In terms of investment risks, we've identified 3 warning signs with ConvaTec Group and understanding them should be part of your investment process.

Of course ConvaTec Group 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. 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.