We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Filta Group Holdings plc (LON:FLTA).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for Filta Group Holdings
Filta Group Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD of UK Operations & Executive Director Jlubomir Urosevic for UK£59k worth of shares, at about UK£1.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.91). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Filta Group Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Filta Group Holdings Insiders Bought Stock Recently
It's good to see that Filta Group Holdings insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£84k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.