Whilst it may not be a huge deal, we thought it was good to see that the CVS Group plc (LON:CVSG) Independent Non-Executive Chairman, Richard Connell, recently bought UK£73k worth of stock, for UK£16.18 per share. Although the purchase is not a big one, increasing their shareholding by only 2.7%, it can be interpreted as a good sign.
Check out our latest analysis for CVS Group
CVS Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director David Wilton for UK£94k worth of shares, at about UK£17.12 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£16.50). 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. 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.
CVS Group insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£19.25. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does CVS Group Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£3.6m worth of CVS Group stock, about 0.3% of the company. I generally like to see higher levels of ownership.
So What Do The CVS Group Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that CVS Group insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for CVS Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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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