Yahoo Finance David Wilton Bought 38% More Shares In CVS Group
CVS Group plc (LON:CVSG) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Chairman, David Wilton, recently bought a whopping UK£2.6m worth of stock, at a price of UK£1,052. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 38%.
Check out our latest analysis for CVS Group
The Last 12 Months Of Insider Transactions At CVS Group
Notably, that recent purchase by David Wilton is the biggest insider purchase of CVS Group shares that we've seen in the last year. That means that even when the share price was higher than UK£10.08 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While CVS Group insiders bought shares during the last year, they didn't sell. They paid about UK£824 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 CVS 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests CVS Group insiders own 0.2% of the company, worth about UK£1.6m. We prefer to see high levels of insider ownership.
So What Do The CVS Group Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that CVS Group insiders are reasonably well aligned, and optimistic for the 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 found 1 warning sign for CVS Group that deserve your attention before buying any shares.
But note: CVS Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.
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