Keystone Law Group Insiders Added UK£591k Of Stock To Their Holdings
Simply Wall St · 09/15 05:39

Multiple insiders secured a larger position in Keystone Law Group plc (LON:KEYS) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Keystone Law Group

The Last 12 Months Of Insider Transactions At Keystone Law Group

In the last twelve months, the biggest single purchase by an insider was when Founder James Knight bought UK£500k worth of shares at a price of UK£4.50 per share. That means that an insider was happy to buy shares at around the current price of UK£4.83. 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. 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. Happily, the Keystone Law Group insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 131.11k shares worth UK£591k. But they sold 15.00k shares for UK£68k. In total, Keystone Law Group insiders bought more than they sold over 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!

AIM:KEYS Insider Trading Volume September 15th 2023

Keystone Law Group 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 Keystone Law Group

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Keystone Law Group insiders own 31% of the company, worth about UK£47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Keystone Law Group Insider Transactions Indicate?

The fact that there have been no Keystone Law Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Keystone Law Group and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Keystone Law Group has 1 warning sign we think you should be aware of.

Of course Keystone Law Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.