Insiders who bought for £242,000 in the UK SSP Group plc (LON:SSPG) at an average buy price of £2.60 over the past year may be disappointed with the stock’s recent 9.0% decline. Insiders buy in the expectation that their investments will appreciate in value over a period of time. However, recent losses have made their investment above worth £181,000, which is less than ideal.
While we don’t believe shareholders should simply follow insider trading, we would consider it foolish to ignore insider trading altogether.
Before examining these insider trades, please note that our analysis indicates that SSPG is potentially undervalued!
SSP Group insider trading in the past year
In the past twelve months, the largest single insider purchase was when Independent Chairman of the Board Michael Clasper bought £202,000 worth of shares at £2.69 per share. This means that even when the share price was above £1.94 (the recent price), an insider wanted to buy shares. Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. Generally, we are more positive about a stock if insiders bought the stock above current prices, as this suggests they viewed the stock as good value, even at a higher price.
SSP Group insiders may have bought shares in the past year, but they haven’t sold any. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Many investors like to check how much a company is owned by insiders. High insider participation often makes company management more concerned with the interests of shareholders. Our data indicates that insiders of the SSP Group hold approximately £7.7m of shares (or 0.5% of the company). Overall, this level of property isn’t that impressive, but it’s definitely better than nothing!
So what does this data suggest about insiders in the SSP group?
The fact that there have been no SSP Group insider trades recently certainly doesn’t bother us. But insiders have shown more appetite for the stock over the past year. Trading is good, but it would be more encouraging if SSP Group insiders bought more shares of the company. Sure, the future is what matters most. So if you are interested in SSP Group, you should check out this free analyst forecast report for the company.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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