Over the past year, several insiders have significantly increased their holdings in Science and Sport SA (LON:SIS), indicating that insider optimism about the company’s prospects has increased.
While we would never suggest that investors base their decisions solely on what a company’s management does, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis on science in sport
In the last twelve months, the biggest purchase by an insider was when Executive Chairman Daniel Wright bought UK£1.0m worth of shares at a price of UK£0.17 per share. Even though the purchase was made at a significantly lower price than the recent price (UK £0.26), we still think the insider buying is positive. Given that the shares were purchased at a lower price, this particular purchase doesn’t tell us much about what insiders think of the current stock price.
Although Science in Sport insiders bought shares over the last year, they didn’t sell any. You can see insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the chart below you will be able to see the precise details of each insider transaction!
Science in Sport isn’t the only stock that insiders are buying. So take a look at this free list of little-known companies with insider buying.
Another way to test the alignment between a company’s leaders and other shareholders is to look at the number of shares they own. We generally like to see fairly high levels of internal ownership. Insiders own 14% of Science in Sport shares, worth around £8.2m. This level of internal ownership is good, but it is far from particularly remarkable. This certainly suggests a reasonable degree of alignment.
There have been no insider transactions in the last three months – that doesn’t mean much. On a more positive note, last year’s transactions are encouraging. Trading is going well, but it would be more encouraging if Science in Sport insiders bought more shares in the company. While it’s good to be aware of what’s going on when it comes to insider ownership and transactions, we also make sure to consider the risks a stock is facing before making a decision to stock. investment. When we did our research, we discovered 3 warning signs for science in sport (1 is a bit worrying!) which we think deserve your full attention.