Independent Non Executive Director of Windar Photonics Picks Up 6.8% More Stock

Investors who take an interest in Windar Photonics PLC (LON:WPHO) should definitely note that the Independent Non Executive Director, Paul Hodges, recently paid UK£0.42 per share to buy UK£93k worth of the stock. Although the purchase only increased their holding by 6.8%, it is still a solid purchase in our view.

Check out our latest analysis for Windar Photonics

The Last 12 Months Of Insider Transactions At Windar Photonics

In fact, the recent purchase by Independent Non Executive Director Paul Hodges was not their only acquisition of Windar Photonics shares this year. They previously made an even bigger purchase of UK£305k worth of shares at a price of UK£0.31 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.44), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Paul Hodges bought a total of 2.06m shares over the year at an average price of UK£0.34. 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!

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 Of Windar Photonics

For a common shareholder, it is worth checking how many shares are held by company 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 17% of Windar Photonics shares, worth about UK£5.1m. 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 Windar Photonics Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Windar Photonics we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Windar Photonics. In terms of investment risks, we've identified 3 warning signs with Windar Photonics and understanding these should be part of your investment process.

But note: Windar Photonics 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.