With stock up 10%, Insiders of CloudCoCo Group plc (LON:CLCO) must be wishing they had bought more last year

CloudCoCo Group plc (LON:CLCO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a UK£1.1m rise in the company's market capitalisation. As a result, their original purchase of UK£120k worth of stock is now worth UK£192k.

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.

Check out our latest analysis for CloudCoCo Group

The Last 12 Months Of Insider Transactions At CloudCoCo Group

The Independent Non-Executive Chairman Simon Duckworth made the biggest insider purchase in the last 12 months. That single transaction was for UK£120k worth of shares at a price of UK£0.01 each. We do like to see buying, but this purchase was made at well below the current price of UK£0.016. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CloudCoCo Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does CloudCoCo Group Boast High Insider Ownership?

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. CloudCoCo Group insiders own about UK£5.8m worth of shares (which is 51% 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.

What Might The Insider Transactions At CloudCoCo Group Tell Us?

It doesn't really mean much that no insider has traded CloudCoCo Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like CloudCoCo Group insiders think the business has merit. While we like knowing 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. To help with this, we've discovered 4 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in CloudCoCo Group.

But note: CloudCoCo 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, but not derivative transactions.

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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.