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Quite a few insiders have dramatically grown their holdings in Alpha Group International plc (LON:ALPH) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Alpha Group International Insider Transactions Over The Last Year
The CEO & Executive Director Clive Kahn made the biggest insider purchase in the last 12 months. That single transaction was for UK£1.0m worth of shares at a price of UK£20.77 each. Even though the purchase was made at a significantly lower price than the recent price (UK£25.70), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£3.2m for 150.26k shares. But insiders sold 12.45k shares worth UK£310k. Overall, Alpha Group International insiders were net buyers 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!
Check out our latest analysis for Alpha Group International
Alpha Group International is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Alpha Group International Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Alpha Group International. In total, Independent Non-Executive Director Vijay Thakrar dumped UK£290k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Alpha Group International
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Alpha Group International insiders own 15% of the company, currently worth about UK£160m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.