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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Secure Trust Bank PLC (LON:STB), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
We've discovered 3 warning signs about Secure Trust Bank. View them for free.
The Last 12 Months Of Insider Transactions At Secure Trust Bank
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman James R. Brown bought UK£103k worth of shares at a price of UK£5.98 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£6.18. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Secure Trust Bank insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 43.55k shares worth UK£282k. But they sold 6.56k shares for UK£40k. In total, Secure Trust Bank insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Secure Trust Bank
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Secure Trust Bank Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Secure Trust Bank, over the last three months. In fact, two insiders bought UK£162k worth of shares. But CFO & Executive Director Rachel Lawrence sold shares worth UK£40k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Secure Trust Bank
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£1.1m worth of Secure Trust Bank stock, about 0.9% of the company. We consider this fairly low insider ownership.