Multiple insiders bought Appreciate Group plc (LON:APP) stock earlier this year, a positive sign for shareholders

·3 min read

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Appreciate Group plc (LON:APP), it sends a favourable message to the company's 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.

Check out our latest analysis for Appreciate Group

The Last 12 Months Of Insider Transactions At Appreciate Group

Notably, that recent purchase by CEO & Director John O'Doherty was not the only time they bought Appreciate Group shares this year. They previously made an even bigger purchase of UK£55k worth of shares at a price of UK£0.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.26). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Appreciate Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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.

Insiders at Appreciate Group Have Bought Stock Recently

There was some insider buying at Appreciate Group over the last quarter. CEO & Director John O'Doherty purchased UK£13k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Appreciate Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about UK£111k worth of Appreciate Group shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Appreciate Group Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Appreciate Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Appreciate Group. Every company has risks, and we've spotted 2 warning signs for Appreciate Group you should know about.

Of course Appreciate Group 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, 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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