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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 Playtech plc (LON:PTEC), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Playtech
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Moran Weizer for UK£270k worth of shares, at about UK£7.50 per share. That means that even when the share price was higher than UK£7.16 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Playtech insiders were buying shares, but not selling. 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!
Check out our latest analysis for Playtech
Playtech is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Playtech
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. Playtech insiders own about UK£295m worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Playtech Insider Transactions Indicate?
The fact that there have been no Playtech insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Playtech insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Playtech, you should check out this free report on analyst forecasts for the company.