Investors who take an interest in Everyman Media Group plc (LON:EMAN) should definitely note that the Interim Creative Director & Director, Charles Dorfman, recently paid UK£0.50 per share to buy UK£373k worth of the stock. Although the purchase only increased their holding by 9.2%, it is still a solid purchase in our view.
Everyman Media Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Director Adam Kaye bought UK£490k worth of shares at a price of UK£0.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.51. 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.
Everyman Media Group insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£0.32 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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 Everyman Media 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 Everyman Media Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Everyman Media Group insiders own 28% of the company, worth about UK£13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Everyman Media Group Insiders?
It's certainly positive to see the recent insider purchases. 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. Given that insiders also own a fair bit of Everyman Media Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Everyman Media Group has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
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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