Insider Buying: The Knights Group Holdings plc (LON:KGH) CEO & Director Just Bought 6.7% More Shares




  • In Business
  • 2022-11-28 05:21:25Z
  • By Simply Wall St.
 

Those following along with Knights Group Holdings plc (LON:KGH) will no doubt be intrigued by the recent purchase of shares by Andrew Beech, CEO & Director of the company, who spent a stonking UK£995k on stock at an average price of UK£0.84. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.7%.

View our latest analysis for Knights Group Holdings

The Last 12 Months Of Insider Transactions At Knights Group Holdings

Notably, that recent purchase by CEO & Director Andrew Beech was not the only time they bought Knights Group Holdings shares this year. They previously made an even bigger purchase of UK£998k worth of shares at a price of UK£1.07 per share. That means that an insider was happy to buy shares at above the current price of UK£0.98. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.

Over the last year, we can see that insiders have bought 2.22m shares worth UK£2.1m. On the other hand they divested 11.14k shares, for UK£40k. Overall, Knights Group Holdings insiders were net buyers during the last year. The average buy price was around UK£0.96. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Knights Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Knights Group Holdings

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Knights Group Holdings insiders own about UK£18m worth of shares. That equates to 22% 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 Does This Data Suggest About Knights Group Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Knights Group Holdings insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Knights Group Holdings has 3 warning signs we think you should be aware of.

Of course Knights Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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