Insiders Of Science in Sport Are Up 87% On Their UK£1.14m Purchase

Insiders who bought Science in Sport plc (LON:SIS) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£10m as a result of the stock's 16% gain over the same period. Put another way, the original UK£1.14m acquisition is now worth UK£2.15m.

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.

We've discovered 4 warning signs about Science in Sport. View them for free.

The Last 12 Months Of Insider Transactions At Science in Sport

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Daniel Wright for UK£1.0m worth of shares, at about UK£0.17 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.32. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Science in Sport insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Science in Sport

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).

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. From our data, it seems that Science in Sport insiders own 8.2% of the company, worth about UK£6.0m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Science in Sport Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Science in Sport stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Science in Sport. At Simply Wall St, we've found that Science in Sport has 4 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

But note: Science in Sport 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.