Jim Clarke Buys Handful Of Shares In Mears Group

Simply Wall St · 09/15/2023 05:02

Potential Mears Group plc (LON:MER) shareholders may wish to note that the Interim Independent Chairman, Jim Clarke, recently bought UK£83k worth of stock, paying UK£2.76 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Mears Group

Mears Group Insider Transactions Over The Last Year

In fact, the recent purchase by Jim Clarke was the biggest purchase of Mears Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£2.84. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Jim Clarke was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
LSE:MER Insider Trading Volume September 15th 2023

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

Does Mears Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Mears Group insiders have about 0.6% of the stock, worth approximately UK£1.7m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Mears Group Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Mears Group stock. 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. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Mears Group.

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.