Insider Buyers At Shearwater Group Recover Some Losses, But Still Down UK£141k

Some of the losses seen by insiders who purchased UK£319.4k worth of Shearwater Group plc (LON:SWG) shares over the past year were recovered after the stock increased by 17% over the past week. However, total losses seen by insiders are still UK£141k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Shearwater Group

The Last 12 Months Of Insider Transactions At Shearwater Group

The Group CEO & Executive Director Philip Higgins made the biggest insider purchase in the last 12 months. That single transaction was for UK£103k worth of shares at a price of UK£0.64 each. That means that an insider was happy to buy shares at above the current price of UK£0.41. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. The only individual insider to buy over the last year was Philip Higgins. Notably Philip Higgins was also the biggest seller.

Philip Higgins bought 430.44k shares over the last 12 months at an average price of UK£0.74. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Shearwater Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shearwater Group insiders own about UK£4.0m worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Shearwater Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Shearwater Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Shearwater Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shearwater Group. For example - Shearwater Group has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.