Staffline Group Chairman Acquires 6.9% More Stock

Even if it's not a huge purchase, we think it was good to see that Thomas Spain, the Chairman of Staffline Group PLC (LON:STAF) recently shelled out UK£48k to buy stock, at UK£0.42 per share. Although the purchase is not a big one, increasing their shareholding by only 6.9%, it can be interpreted as a good sign.

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Staffline Group Insider Transactions Over The Last Year

In fact, the recent purchase by Thomas Spain was the biggest purchase of Staffline Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.41). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid UK£58k for 138.94k shares. On the other hand they divested 243.38k shares, for UK£105k. Over the last year we saw more insider selling of Staffline Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Staffline Group

I will like Staffline Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Staffline Group

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Staffline Group insiders own 5.5% of the company, worth about UK£2.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Staffline Group Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. We don't take much encouragement from the transactions by Staffline Group insiders. And usually insiders own more stock in the company, according to our data. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Staffline Group that deserve your attention before buying any shares.

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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.