Australia markets close in 35 minutes
  • ALL ORDS

    7,757.10
    +30.30 (+0.39%)
     
  • ASX 200

    7,444.50
    +29.00 (+0.39%)
     
  • AUD/USD

    0.7483
    +0.0015 (+0.21%)
     
  • OIL

    84.56
    +0.80 (+0.96%)
     
  • GOLD

    1,799.50
    +3.20 (+0.18%)
     
  • BTC-AUD

    82,749.22
    +742.77 (+0.91%)
     
  • CMC Crypto 200

    1,453.34
    -49.70 (-3.31%)
     
  • AUD/EUR

    0.6416
    +0.0009 (+0.14%)
     
  • AUD/NZD

    1.0445
    +0.0017 (+0.16%)
     
  • NZX 50

    13,093.24
    -32.76 (-0.25%)
     
  • NASDAQ

    15,355.07
    -134.53 (-0.87%)
     
  • FTSE

    7,204.55
    +14.25 (+0.20%)
     
  • Dow Jones

    35,677.02
    +73.92 (+0.21%)
     
  • DAX

    15,542.98
    +70.38 (+0.45%)
     
  • Hang Seng

    26,150.24
    +23.31 (+0.09%)
     
  • NIKKEI 225

    28,555.31
    -249.54 (-0.87%)
     

Even though Coats Group plc's (LON:COA) stock is down 4.2% this week, insiders who bought lately made a US$8.5k profit

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Insiders who purchased Coats Group plc (LON:COA) shares in the past 12 months are unlikely to be deeply impacted by the stock's 4.2% decline over the past week. Even after accounting for the recent loss, the US$113k worth of stock purchased by them is now worth US$122k or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Coats Group

The Last 12 Months Of Insider Transactions At Coats Group

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board David Gosnell bought UK£97k worth of shares at a price of UK£0.69 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£0.74. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Coats Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Coats Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Coats Group insiders own about UK£4.3m worth of shares (which is 0.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Coats Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Coats Group insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Coats Group and understanding it should be part of your investment process.

But note: Coats 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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting