This Drax Group Insider Increased Their Holding In The Last Year

From what we can see, insiders were net buyers in Drax Group plc's (LON:DRX ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Drax Group

The Last 12 Months Of Insider Transactions At Drax Group

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Robert Shuter bought UK£517k worth of shares at a price of UK£6.46 per share. That means that an insider was happy to buy shares at above the current price of UK£6.27. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Robert Shuter was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Drax Group Insiders Are Selling The Stock

The last three months saw significant insider selling at Drax Group. Specifically, Chief Commercial Officer Paul Sheffield ditched UK£50k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Drax Group Boast High 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 Drax Group insiders own 0.6% of the company, worth about UK£14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Drax Group Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Drax Group and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Drax Group has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Drax Group 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.