NCC Group plc's (LON:NCC) recent UK£50m market cap decline means a loss of UK£4.9k for insiders who bought this year

Insiders who bought UK£57k worth of NCC Group plc's (LON:NCC) stock at an average buy price of UK£2.13 over the last year may be disappointed by the recent 7.6% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£52k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for NCC Group

NCC Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Adam Palser bought UK£54k worth of shares at a price of UK£2.16 per share. That means that an insider was happy to buy shares at above the current price of UK£1.95. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Adam Palser was the only individual insider to buy shares in the last twelve months.

Adam Palser purchased 26.52k shares over the year. The average price per share was UK£2.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NCC Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests NCC Group insiders own 0.2% of the company, worth about UK£1.4m. We prefer to see high levels of insider ownership.

So What Do The NCC Group Insider Transactions Indicate?

The fact that there have been no NCC Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think NCC Group insiders are doubting the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: NCC 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, but not derivative transactions.

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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.