Trade Alert: The Group CEO & Executive Director Of Shearwater Group plc (LON:SWG), Philip Higgins, Has Just Spent UK£85k Buying 3.7% More Shares

Investors who take an interest in Shearwater Group plc (LON:SWG) should definitely note that the Group CEO & Executive Director, Philip Higgins, recently paid UK£1.00 per share to buy UK£85k worth of the stock. Although the purchase only increased their holding by 3.7%, it is still a solid purchase in our view.

See our latest analysis for Shearwater Group

The Last 12 Months Of Insider Transactions At Shearwater Group

In fact, the recent purchase by Philip Higgins was the biggest purchase of Shearwater Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£1.09. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Shearwater Group share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Philip Higgins.

Philip Higgins bought a total of 126.00k shares over the year at an average price of UK£0.99. 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!

Shearwater Group 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 Shearwater Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Shearwater Group insiders own 42% of the company, worth about UK£11m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Shearwater Group Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Shearwater Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Shearwater Group 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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