Several Insiders Invested In Altitude Group Flagging Positive News

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

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Altitude Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Graham Mark Feltham bought UK£93k worth of shares at a price of UK£0.22 per share. That means that an insider was happy to buy shares at above the current price of UK£0.20. 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. 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 Graham Mark Feltham was also the biggest seller.

In the last twelve months insiders purchased 587.15k shares for UK£130k. On the other hand they divested 444.44k shares, for UK£93k. Overall, Altitude Group insiders were net buyers during 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!

Check out our latest analysis for Altitude Group

Altitude Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Are Altitude Group Insiders Buying Or Selling?

In the last three months, insider Graham Mark Feltham bought UK£93k. But that was only a smidgen more than the UK£93k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Altitude Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Altitude Group insiders own 43% of the company, currently worth about UK£6.3m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Altitude Group Tell Us?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Altitude Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Altitude Group has 4 warning signs and it would be unwise to ignore them.

But note: Altitude Group 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.