Insiders in The Conygar Investment Company PLC (LON:CIC) are down 12% on their UK£1.0m purchase despite recent gains




  • In Business
  • 2022-11-26 08:28:32Z
  • By Simply Wall St.
 

Insiders who bought UK£1.0m worth of The Conygar Investment Company PLC (LON:CIC) stock in the last year recovered part of their losses as the stock rose by 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling UK£124k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Conygar Investment

Conygar Investment Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Bimaljit Sandhu bought UK£589k worth of shares at a price of UK£1.50 per share. That means that even when the share price was higher than UK£1.32 (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. 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 Conygar Investment insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Conygar Investment 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 Conygar Investment

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Conygar Investment insiders own about UK£16m worth of shares. That equates to 20% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Conygar Investment Tell Us?

The fact that there have been no Conygar Investment insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Conygar Investment and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Conygar Investment that deserve your attention before buying any shares.

But note: Conygar Investment may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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