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Multiple insiders secured a larger position in Keystone Law Group plc (LON:KEYS) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Keystone Law Group
The Last 12 Months Of Insider Transactions At Keystone Law Group
The Founder James Knight made the biggest insider purchase in the last 12 months. That single transaction was for UK£500k worth of shares at a price of UK£4.50 each. We do like to see buying, but this purchase was made at well below the current price of UK£5.10. 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.
Happily, we note that in the last year insiders paid UK£591k for 131.11k shares. On the other hand they divested 15.00k shares, for UK£68k. Overall, Keystone Law Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
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. Keystone Law Group insiders own about UK£50m worth of shares. That equates to 31% of the company. 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 Do The Keystone Law Group Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Keystone Law Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Keystone Law Group. In terms of investment risks, we've identified 1 warning sign with Keystone Law Group and understanding this should be part of your investment process.