Anyone interested in System1 Group PLC (LON:SYS1) should probably be aware that the Founder, John Kearon, recently divested UK£74k worth of shares in the company, at an average price of UK£1.72 each. However, the silver lining is that the sale only reduced their total holding by 1.5%, so we're hesitant to read anything much into it, on its own.
See our latest analysis for System1 Group
System1 Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by COO & Executive Director Stefan Barden for UK£100k worth of shares, at about UK£0.93 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£1.75), we still think insider buying is a positive. 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 insiders purchased 166.00k shares for UK£188k. But they sold 43.00k shares for UK£74k. Overall, System1 Group insiders were net buyers during the last year. Their average price was about UK£1.13. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
System1 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.
Insider Ownership of System1 Group
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. Insiders own 30% of System1 Group shares, worth about UK£6.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At System1 Group Tell Us?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in System1 Group and their transactions don't cause us concern. 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. For instance, we've identified 5 warning signs for System1 Group (1 makes us a bit uncomfortable) you should be aware of.
Of course System1 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. 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.
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About AIM:SYS1
System1 Group
Provides market research data and insight services in the United Kingdom, the United States, Latin America, rest of Europe, and the Asia Pacific.
Flawless balance sheet with solid track record.
