Yahoo Finance Positive Signs As Multiple Insiders Buy Trifast Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Trifast plc's (LON:TRI) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Trifast
The Last 12 Months Of Insider Transactions At Trifast
The CEO & Director Iain Percival made the biggest insider purchase in the last 12 months. That single transaction was for UK£99k worth of shares at a price of UK£0.76 each. That means that an insider was happy to buy shares at above the current price of UK£0.72. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Trifast insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Trifast Insiders Bought Stock Recently
Over the last quarter, Trifast insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£40k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Trifast Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.8% of Trifast shares, worth about UK£5.6m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Trifast Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Trifast insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trifast. Every company has risks, and we've spotted 1 warning sign for Trifast you should know about.
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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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.
