Yahoo Finance Synthomer Insiders Placed Bullish Bets Worth UK£1.65m
Quite a few insiders have dramatically grown their holdings in Synthomer plc (LON:SYNT) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Synthomer
The Last 12 Months Of Insider Transactions At Synthomer
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Alexander Catto bought UK£774k worth of shares at a price of UK£1.97 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£3.01. 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.
In the last twelve months insiders purchased 833.05k shares for UK£1.7m. But insiders sold 90.98k shares worth UK£170k. In the last twelve months there was more buying than selling by Synthomer insiders. 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!
Synthomer is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Synthomer Insiders Bought Stock Recently
Over the last quarter, Synthomer insiders have spent a meaningful amount on shares. CEO & Executive Director Michael Willome spent UK£112k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. Based on our data, Synthomer insiders have about 0.6% of the stock, worth approximately UK£2.9m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Synthomer Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Synthomer insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Synthomer. While conducting our analysis, we found that Synthomer has 3 warning signs and it would be unwise to ignore these.
Of course Synthomer 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 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.
