Insiders Give Up UK£59k As Synthomer Stock Drops To UK£0.84

Insiders who bought UK£204.4k worth of Synthomer plc's (LON:SYNT) stock at an average buy price of UK£1.19 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£145.2k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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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 even when the share price was higher than UK£0.84 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Synthomer 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!

View 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.

Insider Ownership Of Synthomer

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Synthomer, though insiders do hold about UK£529k worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Do The Synthomer Insider Transactions Indicate?

The fact that there have been no Synthomer insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Synthomer insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Synthomer. When we did our research, we found 2 warning signs for Synthomer (1 doesn't sit too well with us!) that we believe deserve your full attention.

Of course Synthomer 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 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.