Whilst it may not be a huge deal, we thought it was good to see that the Porvair plc (LON:PRV) CEO & Director, Hooman Javvi, recently bought UK£50k worth of stock, for UK£8.33 per share. That purchase might not be huge but it did increase their holding by 18%.
Porvair Insider Transactions Over The Last Year
Notably, that recent purchase by CEO & Director Hooman Javvi was not the only time they bought Porvair shares this year. They previously made an even bigger purchase of UK£99k worth of shares at a price of UK£7.00 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£8.42), we still think insider buying is a positive. 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.
Porvair insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£7.77. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Porvair
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.
Does Porvair Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, Porvair insiders have about 0.3% of the stock, worth approximately UK£1.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
So What Do The Porvair Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Porvair insiders are doubting the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Porvair.
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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