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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Xeros Technology Group plc's (LON:XSG) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Xeros Technology Group
The Last 12 Months Of Insider Transactions At Xeros Technology Group
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Klaas de Boer bought UK£50k worth of shares at a price of UK£0.015 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.013). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Xeros Technology Group insiders bought shares during the last year, they didn't sell. They paid about UK£0.011 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
Xeros Technology Group 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.
Xeros Technology Group Insiders Bought Stock Recently
It's good to see that Xeros Technology Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£44k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£198k worth of Xeros Technology Group stock, about 3.0% of the company. We consider this fairly low insider ownership.