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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 The Character Group plc (LON:CCT), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Character Group
The Last 12 Months Of Insider Transactions At Character Group
Notably, that recent purchase by Kirankumar Shah is the biggest insider purchase of Character Group shares that we've seen in the last year. That means that even when the share price was higher than UK£2.65 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Notably Kirankumar Shah was also the biggest seller.
Over the last year, we can see that insiders have bought 119.60k shares worth UK£323k. But insiders sold 119.60k shares worth UK£323k. Overall, Character 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Character Group Insiders Buying Or Selling?
In the last three months, insiders bought UK£323k. That's only a tiny bit more than the sales, worth UK£323k. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership Of Character Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Character Group insiders own 22% of the company, worth about UK£11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.