Independent Non-Executive Chairman of Watkin Jones Alan Clifford Giddins Buys 22% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Watkin Jones Plc (LON:WJG) Independent Non-Executive Chairman, Alan Clifford Giddins, recently bought UK£51k worth of stock, for UK£0.32 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 22%.

See our latest analysis for Watkin Jones

The Last 12 Months Of Insider Transactions At Watkin Jones

In fact, the recent purchase by Alan Clifford Giddins was the biggest purchase of Watkin Jones shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.30). 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. To us, it's very important to consider the price insiders pay for 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.

Watkin Jones insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Watkin Jones

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 Watkin Jones, though insiders do hold about UK£539k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Watkin Jones Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give 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 Watkin Jones insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Watkin Jones. To that end, you should learn about the 2 warning signs we've spotted with Watkin Jones (including 1 which shouldn't be ignored).

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.