Insider Buyers At Superdry Likely Disappointed With 19% Slide

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Insiders who bought UK£1.37m worth of Superdry plc's (LON:SDRY) stock at an average buy price of UK£0.52 over the last year may be disappointed by the recent 19% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth UK£210.1k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Superdry

The Last 12 Months Of Insider Transactions At Superdry

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Julian Dunkerton bought UK£735k worth of shares at a price of UK£0.79 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.08). 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. 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.

In the last twelve months Superdry insiders were buying shares, but not selling. The average buy price was around UK£0.52. This is nice to see since it implies that insiders might see value around current prices. 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!

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Superdry is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Superdry Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Superdry. In total, insiders bought UK£360k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of Superdry

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Superdry insiders own 37% of the company, worth about UK£2.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.