Stock Analysis

Insiders who bought Argo Blockchain plc (LON:ARB) stock in the last 12 months recover some losses, but still down UK£45k

  •  Updated
LSE:ARB
Source: Shutterstock

Insiders who purchased UK£53k worth of Argo Blockchain plc (LON:ARB) shares over the past year recouped some of their losses after price gained 57% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled UK£45k since the time of purchase.

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 Argo Blockchain

Argo Blockchain Insider Transactions Over The Last Year

The Independent Non-Executive Director Sarah Gow made the biggest insider purchase in the last 12 months. That single transaction was for UK£53k worth of shares at a price of UK£1.32 each. That means that even when the share price was higher than UK£0.21 (the recent price), an insider wanted to purchase shares. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Sarah Gow 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!

insider-trading-volume
LSE:ARB Insider Trading Volume October 27th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Argo Blockchain

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. Based on our data, Argo Blockchain insiders have about 1.0% of the stock, worth approximately UK£945k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Do The Argo Blockchain Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Argo Blockchain stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Argo Blockchain you should be aware of, and 2 of these shouldn't be ignored.

But note: Argo Blockchain 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.

Valuation is complex, but we're helping make it simple.

Find out whether Argo Blockchain is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis