Several Insiders Invested In On the Beach Group Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of On the Beach Group plc (LON:OTB), that sends out a positive 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.
See our latest analysis for On the Beach Group
On the Beach Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman of the Board, Richard Pennycook, for UK£60k worth of shares, at about UK£1.56 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of UK£1.38. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Richard Pennycook. Notably Richard Pennycook was also the biggest buyer, having purchased UK£174k worth of shares.
Over the last year, we can see that insiders have bought 119.39k shares worth UK£174k. But they sold 38.33k shares for UK£60k. In the last twelve months there was more buying than selling by On the Beach Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
On the Beach Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Are On the Beach Group Insiders Buying Or Selling?
We saw insider selling worth UK£60k in the last three months. However that only slightly eclipses the UK£59k worth of purchases. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Does On the Beach 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. It appears that On the Beach Group insiders own 7.8% of the company, worth about UK£18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About On the Beach Group Insiders?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in On the Beach Group and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing On the Beach Group. At Simply Wall St, we've found that On the Beach Group has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.