Favourable Signals For Redde Northgate: Numerous Insiders Acquired Stock

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

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.

Check out our latest analysis for Redde Northgate

Redde Northgate Insider Transactions Over The Last Year

The CEO & Director Martin Ward made the biggest insider purchase in the last 12 months. That single transaction was for UK£199k worth of shares at a price of UK£3.19 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£4.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 114.42k shares for UK£377k. But insiders sold 10.40k shares worth UK£39k. In total, Redde Northgate insiders bought more than they sold over 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!

Redde Northgate is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Redde Northgate Insiders Buying Or Selling?

In the last quarter there were insider sales totalling UK£19k. But that was only a smidgen more than the UK£19k worth of buying. Ultimately the overall selling isn't enough to tell us much.

Insider Ownership Of Redde Northgate

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Redde Northgate insiders own 1.5% of the company, worth about UK£14m. 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 Do The Redde Northgate Insider Transactions Indicate?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Redde Northgate insiders are doubting the company, and they do own shares. 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 instance, we've identified 3 warning signs for Redde Northgate (2 are significant) 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.

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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.