Even if it's not a huge purchase, we think it was good to see that John Callaway, the Senior Independent Non-Executive Director of Foxtons Group plc (LON:FOXT) recently shelled out UK£38k to buy stock, at UK£0.38 per share. That purchase might not be huge but it did increase their holding by 37%.
Foxtons Group Insider Transactions Over The Last Year
The Independent Chairman Nigel Sutherland Rich made the biggest insider purchase in the last 12 months. That single transaction was for UK£55k worth of shares at a price of UK£0.55 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.37). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Foxtons Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.48. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Foxtons 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.
Insider Ownership Of Foxtons Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Foxtons Group insiders own 1.6% of the company, worth about UK£1.8m. 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.
What Might The Insider Transactions At Foxtons Group Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Foxtons Group insiders bought more shares in the company. While it's good to be aware of 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. In terms of investment risks, we've identified 2 warning signs with Foxtons Group and understanding these should be part of your investment process.
Of course Foxtons 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.
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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.