Insider Spends UK£61k Buying More Shares In Facilities by ADF

Even if it's not a huge purchase, we think it was good to see that John Richards, the Non-Executive Chairman of Facilities by ADF plc (LON:ADF) recently shelled out UK£61k to buy stock, at UK£0.30 per share. However, it only increased their shares held by 8.3%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Facilities by ADF

Facilities by ADF Insider Transactions Over The Last Year

Notably, that recent purchase by John Richards is the biggest insider purchase of Facilities by ADF shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.34. 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.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Facilities by ADF is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Facilities by ADF

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Facilities by ADF insiders own 13% of the company, worth about UK£4.7m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Facilities by ADF Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Facilities by ADF insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Facilities by ADF (of which 2 are significant!) you should know about.

But note: Facilities by ADF 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.