Triad Group Insiders Placed Bullish Bets Worth UK£1.65m

Simply Wall St · 10/16 05:02

In the last year, multiple insiders have substantially increased their holdings of Triad Group plc (LON:TRD) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

See our latest analysis for Triad Group

The Last 12 Months Of Insider Transactions At Triad Group

The Executive Chairman John Rigg made the biggest insider purchase in the last 12 months. That single transaction was for UK£1.3m worth of shares at a price of UK£3.15 each. That means that even when the share price was higher than UK£3.05 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 537.57k shares for UK£1.7m. But they sold 6.68k shares for UK£19k. Overall, Triad Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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LSE:TRD Insider Trading Volume October 16th 2024

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Triad Group Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Triad Group, over the last three months. In total, four insiders bought UK£307k worth of shares in that time. But we did see Client Services Director & Executive Director Timothy Eckes sell shares worth UK£19k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Triad Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Triad Group insiders own 79% of the company, currently worth about UK£41m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Triad Group Tell Us?

It is good to see recent purchasing. 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 Triad Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Triad Group (including 1 which is a bit unpleasant).

But note: Triad Group 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 of direct interests only, but not derivative transactions or indirect interests.