Insider Stock Buying Of Windar Photonics Delivers Return On €656.2k Investment

Insiders who purchased Windar Photonics PLC (LON:WPHO) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After accounting for the recent loss, the €656.2k worth of shares they purchased is now worth €729.3k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Windar Photonics

Windar Photonics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non Executive Director Paul Hodges bought 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£0.39), 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 1.87m shares over the year at an average price of UK£0.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Windar Photonics insiders own 15% of the company, worth about UK£4.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Windar Photonics Tell Us?

It doesn't really mean much that no insider has traded Windar Photonics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Windar Photonics insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Windar Photonics. Case in point: We've spotted 2 warning signs for Windar Photonics you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.