Insider Buyers Lose UK£18k As Tracsis Sheds UK£24m

The recent price decline of 14% in Tracsis plc's (LON:TRCS) stock may have disappointed insiders who bought UK£42.0k worth of shares at an average price of UK£8.72 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£23.6k.

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.

View our latest analysis for Tracsis

Tracsis Insider Transactions Over The Last Year

The Non-Executive Director Ross Paterson made the biggest insider purchase in the last 12 months. That single transaction was for UK£42k worth of shares at a price of UK£8.75 each. That means that an insider was happy to buy shares at above the current price of UK£4.90. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ross Paterson was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. 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 Tracsis Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Tracsis, though insiders do hold about UK£285k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The Tracsis Insider Transactions Indicate?

The fact that there have been no Tracsis insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Tracsis stock. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Tracsis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.