TheWorks.co.uk Reaches UK£23m Market Cap Benefiting Insider Stock Buying

TheWorks.co.uk plc (LON:WRKS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 37% resulting in a UK£6.3m addition to the company’s market value. Put another way, the original UK£136.1k acquisition is now worth UK£225.7k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At TheWorks.co.uk

The Independent Non-Executive Chairman Stephen Bellamy made the biggest insider purchase in the last 12 months. That single transaction was for UK£49k worth of shares at a price of UK£0.22 each. We do like to see buying, but this purchase was made at well below the current price of UK£0.37. 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 610.00k shares for UK£136k. But they sold 100.00k shares for UK£23k. In the last twelve months there was more buying than selling by TheWorks.co.uk insiders. 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!

See our latest analysis for TheWorks.co.uk

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.

TheWorks.co.uk Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at TheWorks.co.uk. In total, insiders bought UK£38k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of TheWorks.co.uk

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that TheWorks.co.uk insiders own 18% of the company, worth about UK£4.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The TheWorks.co.uk Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in TheWorks.co.uk 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. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in TheWorks.co.uk.

But note: TheWorks.co.uk may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.