Executive Chairman of SysGroup Heejae Chae Buys 3.9% More Shares

Investors who take an interest in SysGroup plc (LON:SYS) should definitely note that the Executive Chairman, Heejae Chae, recently paid UK£0.24 per share to buy UK£100k worth of the stock. Although the purchase only increased their holding by 3.9%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At SysGroup

In fact, the recent purchase by Heejae Chae was the biggest purchase of SysGroup shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (UK£0.28), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Heejae Chae purchased 666.64k shares over the year. The average price per share was UK£0.21. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for SysGroup

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that SysGroup insiders own 24% of the company, worth about UK£5.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The SysGroup Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in SysGroup shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SysGroup. Every company has risks, and we've spotted 4 warning signs for SysGroup (of which 1 is a bit concerning!) you should know about.

But note: SysGroup may not be the best stock to buy. So take a peek at this free list 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.