Positive Signs As Multiple Insiders Buy Watkin Jones Stock

Explore Watkin Jones's Fair Values from the Community and select yours

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Watkin Jones Plc's (LON:WJG) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Watkin Jones

The CFO & Director Simon David Jones made the biggest insider purchase in the last 12 months. That single transaction was for UK£61k worth of shares at a price of UK£0.28 each. So it's clear an insider wanted to buy, at around the current price, which is UK£0.28. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Watkin Jones insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Watkin Jones

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.

Does Watkin Jones Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Watkin Jones insiders own about UK£645k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About Watkin Jones Insiders?

The fact that there have been no Watkin Jones insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Watkin Jones insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Watkin Jones. You'd be interested to know, that we found 2 warning signs for Watkin Jones and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.