Have Insiders Been Buying FireAngel Safety Technology Group plc (LON:FA.) Shares?

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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in FireAngel Safety Technology Group plc (LON:FA.).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 FireAngel Safety Technology Group

FireAngel Safety Technology Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director John Shepherd for UK£100k worth of shares, at about UK£0.47 per share. That means that even when the share price was higher than UK£0.38 (the recent price), an insider wanted to purchase shares. 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. 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.

In the last twelve months insiders purchased 411k shares for UK£161k. But they sold 57883 for UK£17k. In total, FireAngel Safety Technology Group insiders bought more than they sold over the last year. The average buy price was around UK£0.39. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart 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.

FireAngel Safety Technology Group Insiders Bought Stock Recently

At FireAngel Safety Technology Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, four insiders bought UK£144k worth of shares. But Ashley Silverton sold shares worth UK£17k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership of FireAngel Safety Technology Group

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. From our data, it seems that FireAngel Safety Technology Group insiders own 11% of the company, worth about UK£3.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The FireAngel Safety Technology Group Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that FireAngel Safety Technology Group insiders are reasonably well aligned, and optimistic for the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

But note: FireAngel Safety Technology Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.