Insiders Buying Intercede Group Might Wish They Invested More, Stock Gains 18%

Intercede Group plc (LON:IGP) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a UK£8.4m addition to the company’s market value. Put another way, the original UK£168.3k acquisition is now worth UK£269.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Intercede Group

Intercede Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Royston Hoggarth bought UK£70k worth of shares at a price of UK£0.70 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.94. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Intercede Group insiders bought shares during the last year, they didn't sell. The average buy price was around UK£0.59. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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

Insiders At Intercede Group Have Bought Stock Recently

It's good to see that Intercede Group insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£151k for shares in the company -- and none sold. This makes one think the business has some good points.

Does Intercede Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Intercede Group insiders own 13% of the company, worth about UK£7.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Intercede Group Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Intercede Group insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Intercede Group and we suggest you have a look.

But note: Intercede 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.