Solid State Slides As Insider Purchases Lose Another UK£123k

Insiders who bought UK£356.9k worth of Solid State plc's (LON:SOLI) stock at an average buy price of UK£2.06 over the last year may be disappointed by the recent 13% 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£233.8k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Solid State

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£1.35. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Peter James was also the biggest seller.

Happily, we note that in the last year insiders paid UK£357k for 173.22k shares. But insiders sold 130.73k shares worth UK£300k. Overall, Solid State insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Solid State Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Solid State, over the last three months. In fact, seven insiders bought UK£71k worth of shares. On the other hand, CFO, Group Finance Director & Executive Director Peter James netted UK£14k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Solid State

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of Solid State shares, worth about UK£12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Solid State Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Solid State shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Solid State has 4 warning signs (and 1 which is concerning) we think you should know about.

Of course Solid State may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.