It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tatton Asset Management plc's (LON:TAM) 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 do think it is perfectly logical to keep tabs on what insiders are doing.
Tatton Asset Management Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO & Executive Director Paul Edwards bought UK£71k worth of shares at a price of UK£4.30 per share. That means that an insider was happy to buy shares at above the current price of UK£3.50. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
While Tatton Asset Management insiders bought shares during the last year, they didn't sell. The average buy price was around UK£3.85. I'd consider this a positive as it suggests insiders see value at around the current price. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Tatton Asset Management Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Tatton Asset Management. CEO of Paradigm Mortgage Services & MD of Paradigm Consulting Robert Hunt shelled out UK£11k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Tatton Asset Management Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tatton Asset Management insiders own about UK£17m worth of shares. That equates to 8.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Tatton Asset Management Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Tatton Asset Management and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tatton Asset Management. Case in point: We've spotted 1 warning sign for Tatton Asset Management you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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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