Insider Buyers At Synthomer Recover Some Losses, But Still Down UK£107k

Insiders who purchased UK£264.1k worth of Synthomer plc (LON:SYNT) shares over the past year recouped some of their losses after price gained 12% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling UK£107k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Synthomer

The CEO & Executive Director Michael Willome made the biggest insider purchase in the last 12 months. That single transaction was for UK£83k worth of shares at a price of UK£1.18 each. That means that an insider was happy to buy shares at above the current price of UK£0.56. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Synthomer insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.94. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Synthomer

Synthomer 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.

Synthomer Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Synthomer. CEO & Executive Director Michael Willome purchased UK£31k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does Synthomer Boast High 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. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Synthomer, though insiders do hold about UK£442k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Synthomer Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Synthomer insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Synthomer that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.