Australia markets closed
  • ALL ORDS

    6,865.30
    +18.00 (+0.26%)
     
  • ASX 200

    6,634.10
    +18.80 (+0.28%)
     
  • AUD/USD

    0.7436
    -0.0003 (-0.05%)
     
  • OIL

    45.76
    +0.12 (+0.26%)
     
  • GOLD

    1,847.90
    +6.80 (+0.37%)
     
  • BTC-AUD

    25,724.18
    -172.93 (-0.67%)
     
  • CMC Crypto 200

    375.25
    -3.99 (-1.05%)
     
  • AUD/EUR

    0.6109
    -0.0013 (-0.21%)
     
  • AUD/NZD

    1.0533
    +0.0022 (+0.21%)
     
  • NZX 50

    12,631.38
    -17.53 (-0.14%)
     
  • NASDAQ

    12,469.72
    +2.59 (+0.02%)
     
  • FTSE

    6,528.53
    +38.26 (+0.59%)
     
  • Dow Jones

    30,061.29
    +91.77 (+0.31%)
     
  • DAX

    13,258.92
    +6.06 (+0.05%)
     
  • Hang Seng

    26,835.92
    +107.42 (+0.40%)
     
  • NIKKEI 225

    26,751.24
    -58.13 (-0.22%)
     

Speedy Hire Plc (LON:SDY) Insiders Increased Their Holdings

Simply Wall St
·3-min read

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Speedy Hire Plc (LON:SDY).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Speedy Hire

The Last 12 Months Of Insider Transactions At Speedy Hire

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board David James Shearer for UK£55k worth of shares, at about UK£0.55 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.49). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was David James Shearer.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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

Speedy Hire is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Speedy Hire

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£877k worth of Speedy Hire stock, about 0.3% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Speedy Hire Tell Us?

The fact that there have been no Speedy Hire insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Speedy Hire insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Speedy Hire you should be aware of.

Of course Speedy Hire may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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. 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@simplywallst.com.