SysGroup Executive Chairman Acquires 10% More Stock

Potential SysGroup plc (LON:SYS) shareholders may wish to note that the Executive Chairman, Heejae Chae, recently bought UK£140k worth of stock, paying UK£0.17 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 10%.

View our latest analysis for SysGroup

The Last 12 Months Of Insider Transactions At SysGroup

In fact, the recent purchase by Heejae Chae was the biggest purchase of SysGroup shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£0.18 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for SysGroup share holders is that an insider was buying at near the current price. Heejae Chae was the only individual insider to buy during the last year.

Heejae Chae bought a total of 950.00k shares over the year at an average price of UK£0.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does SysGroup 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. I reckon it's a good sign if insiders own a significant number of shares in the company. SysGroup insiders own about UK£3.1m worth of shares. That equates to 21% of the company. 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 SysGroup Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in SysGroup shares, given these transactions (along with notable insider ownership of the company). 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. Our analysis shows 4 warning signs for SysGroup (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

But note: SysGroup 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.