The recent 12% drop in GB Group plc's (LON:GBG) stock could come as a blow to insiders who purchased UK£191k worth of stock at an average buy price of UK£3.68 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£164k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for GB Group

The Last 12 Months Of Insider Transactions At GB Group

Notably, that recent purchase by Richard Longdon is the biggest insider purchase of GB Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£3.17. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

GB Group insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£3.68. I'd consider this a positive as it suggests insiders see value at around the current price. 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! insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

GB Group Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at GB Group. Specifically, Non-Executive Chairman Richard Longdon bought UK£100k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.



Does GB 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests GB Group insiders own 0.4% of the company, worth about UK£3.5m. We consider this fairly low insider ownership.

So What Do The GB Group 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that GB 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. You'd be interested to know, that we found 2 warning signs for GB Group and we suggest you have a look.

Of course GB Group may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.

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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