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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 Carr's Group plc (LON:CARR), 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 would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Carr's Group
The Last 12 Months Of Insider Transactions At Carr's Group
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chair Timothy Roy Jones for UK£200k worth of shares, at about UK£1.36 per share. That means that an insider was happy to buy shares at above the current price of UK£1.12. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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 Carr's Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and 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!
Carr's 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
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Carr's Group insiders own about UK£464k worth of shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Carr's Group Insiders?
It doesn't really mean much that no insider has traded Carr's Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Carr's Group insiders bought more shares in the company. 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. In terms of investment risks, we've identified 1 warning sign with Carr's Group and understanding this should be part of your investment process.