While not a huge buy, we think it was good to see that Robert Gray, the Senior Independent Director of ReSI Capital Management Limited of Residential secure income plc (LON:RESI) recently paid £55,000 to buy shares, at £1.11 per share. This purchase may not be huge, but it increased their stake by 20%.
Check out our latest analysis for Secure Home Income
The last 12 months of insider trading at Residential Secure Income
In fact, the recent purchase by Robert Gray was the largest Residential Secure Income stock purchase by an insider in the past twelve months, according to our records. Clearly, therefore, an insider wanted to buy, even at a higher price than the current share price (i.e. UK £1.11). It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. In our view, the price an insider pays for a stock is very important. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.
Residential Secure Income insiders may have bought stocks in the past year, but they haven’t sold any. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
Secure Home Income isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. We generally like to see fairly high levels of insider ownership. From what we can see in our data, insiders only own around £411,000 of Residential Secure Income shares. This level of insider ownership is particularly low and discouraging.
So what do insider trades indicate on residential secured income?
The recent insider buying is encouraging. And an analysis of last year’s transactions also gives us confidence. We would certainly prefer to see higher levels of insider ownership, but analysis of insider trading suggests that Secure Home Income insiders are expecting a bright future. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. At Simply Wall St, we have found that secure residential income has 3 warning signs (1 is worrying!) which deserve your attention before going further in your analysis.
But note: Secure Home Income may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE 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.