Several Insiders Invested In Solid State Flagging Positive News

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Solid State plc's (LON:SOLI) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Solid State Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CFO, Group Finance Director & Executive Director Peter James bought UK£88k worth of shares at a price of UK£2.20 per share. That means that an insider was happy to buy shares at above the current price of UK£1.84. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Peter James was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 157.10k shares worth UK£297k. But they sold 114.65k shares for UK£240k. Overall, Solid State insiders were net buyers during the last year. Their average price was about UK£1.89. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Solid State

Solid State is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Are Solid State Insiders Buying Or Selling?

In the last quarter there were insider sales totalling UK£40k. However that only slightly eclipses the UK£40k worth of purchases. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Does Solid State 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 16% of Solid State shares, worth about UK£16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Solid State Insiders?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. However, our analysis of transactions over the last year is heartening. Insiders own shares in Solid State and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Solid State.

But note: Solid State 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 of direct interests only, but not derivative transactions or indirect interests.

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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.