The CEO & Executive Director of GB Group plc (LON:GBG), Christopher Clark, Just Bought 21% More Shares

Potential GB Group plc (LON:GBG) shareholders may wish to note that the CEO & Executive Director, Christopher Clark, recently bought UK£357k worth of stock, paying UK£8.74 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 21%.

See our latest analysis for GB Group

The Last 12 Months Of Insider Transactions At GB Group

The Group MD & Executive Director, Nicolas Brown, made the biggest insider sale in the last 12 months. That single transaction was for UK£2.3m worth of shares at a price of UK£6.99 each. That means that an insider was selling shares at slightly below the current price (UK£9.12). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 40% of Nicolas Brown's holding.

Happily, we note that in the last year insiders paid UK£824k for 102.06k shares. But insiders sold 571.37k shares worth UK£4.6m. In total, GB Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like GB Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of GB Group

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 0.9% of GB Group shares, worth about UK£16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About GB Group Insiders?

Unfortunately, there has been more insider selling of GB Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since GB Group is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - GB Group has 1 warning sign we think you should be aware of.

But note: GB 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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