Conygar Investment Insiders Lose Out As Stock Sinks To UK£0.49

Insiders who acquired UK£146.8k worth of The Conygar Investment Company PLC's (LON:CIC) stock at an average price of UK£0.86 in the past 12 months may be dismayed by the recent 16% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£84.0k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Conygar Investment

The Last 12 Months Of Insider Transactions At Conygar Investment

The CEO & Executive Director Robert Thomas Ware made the biggest insider purchase in the last 12 months. That single transaction was for UK£74k worth of shares at a price of UK£0.86 each. That means that even when the share price was higher than UK£0.49 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Robert Thomas Ware was also the biggest seller.

In the last twelve months insiders purchased 171.40k shares for UK£147k. On the other hand they divested 86.40k shares, for UK£74k. In total, Conygar Investment insiders bought more than they sold over the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 20% of Conygar Investment shares, worth about UK£5.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Conygar Investment Tell Us?

It doesn't really mean much that no insider has traded Conygar Investment shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Conygar Investment and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Conygar Investment (1 is a bit unpleasant) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.