With Getech Group Up 27%, Insider Buyers Count Their Returns
Last week, Getech Group plc (LON:GTC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 27% last week, resulting in a UK£1.2m increase in the company's market worth, implying a 26% gain on their initial purchase. Put another way, the original UK£39.9k acquisition is now worth UK£50.5k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Getech Group
The Independent Non-Executive Chairman Michael Covington made the biggest insider purchase in the last 12 months. That single transaction was for UK£40k worth of shares at a price of UK£0.03 each. We do like to see buying, but this purchase was made at well below the current price of UK£0.038. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
View our latest analysis for Getech Group
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Have Getech Group Insiders Traded Recently?
In the last three months, Independent Non-Executive Chairman Michael Covington bought UK£40k. However that only slightly eclipses the sales, UK£40k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Getech Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Getech Group insiders have about 3.0% of the stock, worth approximately UK£173k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Getech Group Insiders?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Getech Group insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Getech Group (1 is a bit unpleasant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.