We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in accesso Technology Group plc (LON:ACSO).
Do Insider Transactions Matter?
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.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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.’
The Last 12 Months Of Insider Transactions At accesso Technology Group
Over the last year, we can see that the biggest insider sale was by CFO, Finance Director & Executive Director John Alder for UK£776k worth of shares, at about UK£22.00 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is UK£15.00. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was John Alder.
The chart below shows insider transactions 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does accesso Technology Group 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. We usually like to see fairly high levels of insider ownership. accesso Technology Group insiders own 0.4% of the company, currently worth about UK£1.7m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The accesso Technology Group Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded accesso Technology Group shares in the last quarter. Our analysis of accesso Technology Group insider transactions leaves us unenthusiastic. And we’re not picking up on high enough insider ownership to give us any comfort. Of course, the future is what matters most. So if you are interested in accesso Technology Group, you should check out this free report on analyst forecasts for the company.
But note: accesso Technology 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.