Are Insiders Buying Network International Holdings plc (LON:NETW) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Network International Holdings plc (LON:NETW).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Network International Holdings

Network International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Victoria Hull for UK£149k worth of shares, at about UK£2.30 per share. We do like to see buying, but this purchase was made at well below the current price of UK£3.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Network International Holdings insiders bought shares during the last year, they didn't sell. 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 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Network International Holdings insiders have about 0.2% of the stock, worth approximately UK£2.8m. I generally like to see higher levels of ownership.

So What Do The Network International Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Network International Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Network International Holdings insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Network International Holdings. While conducting our analysis, we found that Network International Holdings has 4 warning signs and it would be unwise to ignore these.

But note: Network International Holdings 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. 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.
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