Whilst it may not be a huge deal, we thought it was good to see that the Arcontech Group plc (LON:ARC) CEO & Executive Director, Matthew Jeffs, recently bought UK£72k worth of stock, for UK£1.20 per share. However, it only increased their shares held by 6.4%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Arcontech Group
The Last 12 Months Of Insider Transactions At Arcontech Group
In fact, the recent purchase by Matthew Jeffs was the biggest purchase of Arcontech Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£1.18 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Matthew Jeffs was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Arcontech Group insiders own about UK£7.7m worth of shares (which is 49% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Arcontech Group Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Arcontech Group. Nice! 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. Every company has risks, and we've spotted 4 warning signs for Arcontech Group (of which 1 is a bit concerning!) you should know about.
Of course Arcontech Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
About AIM:ARC
Arcontech Group
Engages in the development and sale of proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australia, and the Asia Pacific.
Flawless balance sheet and undervalued.