In the last year, multiple insiders have substantially increased their holdings of Creo Medical Group PLC (LON:CREO) stock, indicating that insiders’ optimism about the company’s prospects has increased.
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.
View our latest analysis for Creo Medical Group
Creo Medical Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Luis Collantes for UK£888k worth of shares, at about UK£0.20 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.26), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Creo Medical Group insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Creo Medical Group Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Creo Medical Group. Overall, eight insiders shelled out UK£2.1m for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
Does Creo Medical Group Boast High Insider Ownership?
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. Insiders own 4.6% of Creo Medical Group shares, worth about UK£4.2m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Creo Medical Group Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Creo Medical Group insiders are reasonably well aligned, and optimistic for the future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we’ve spotted with Creo Medical Group (including 2 which make us uncomfortable).
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, 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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