Ian Johnson Is The Executive Chairman of Circassia Group Plc (LON:CIR) And They Just Picked Up 38% More Shares

Even if it's not a huge purchase, we think it was good to see that Ian Johnson, the Executive Chairman of Circassia Group Plc (LON:CIR) recently shelled out UK£56k to buy stock, at UK£0.37 per share. That purchase might not be huge but it did increase their holding by 38%.

See our latest analysis for Circassia Group

The Last 12 Months Of Insider Transactions At Circassia Group

In fact, the recent purchase by Executive Chairman Ian Johnson was not their only acquisition of Circassia Group shares this year. They previously made an even bigger purchase of UK£58k worth of shares at a price of UK£0.29 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.38. 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 Circassia Group insiders were buying shares, but not selling. Their average price was about UK£0.32. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

Circassia 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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Circassia Group insiders own about UK£27m worth of shares. That equates to 17% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Circassia Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Circassia Group insiders are well aligned, and that they may think the share price is too low. 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 2 warning signs for Circassia Group that deserve your attention before buying any shares.

Of course Circassia 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. 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.
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