Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Bodycote plc (LON:BOY), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Bodycote

Bodycote Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chair Daniel Dayan for UK£197k worth of shares, at about UK£5.47 per share. We do like to see buying, but this purchase was made at well below the current price of UK£6.25. 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.

In the last twelve months Bodycote insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!LSE:BOY Insider Trading Volume December 23rd 2024

Bodycote is not the only stock insiders are buying. So take a peek at this freelist of under-the-radar companies with insider buying.

Insiders At Bodycote Have Bought Stock Recently

Over the last quarter, Bodycote insiders have spent a meaningful amount on shares. Specifically, Independent Non-Executive Chair Daniel Dayan bought UK£197k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Bodycote 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£1.1m worth of Bodycote stock, about 0.1% of the company. We prefer to see high levels of insider ownership.

So What Do The Bodycote Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Bodycote insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Bodycote has 2 warning signs and it would be unwise to ignore them.

Story Continues

But note: Bodycote may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE 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.

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