Notorious Pictures Reaches €20m Market Cap Benefiting Insider Stock Buying
Notorious Pictures S.p.A. (BIT:NPI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a €2.2m rise in the company's market capitalisation, translating to a gain of 48% on their initial investment. Put another way, the original €177.2k acquisition is now worth €262.0k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Notorious Pictures
The Chairman of the Board & Investor Relations Manager Guglielmo Marchetti made the biggest insider purchase in the last 12 months. That single transaction was for €145k worth of shares at a price of €0.62 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of €0.92. 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.
Guglielmo Marchetti purchased 284.80k shares over the year. The average price per share was €0.62. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Notorious Pictures
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).
Does Notorious Pictures Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Notorious Pictures insiders own about €16m worth of shares (which is 78% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Notorious Pictures Insiders?
The fact that there have been no Notorious Pictures insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Notorious Pictures insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Notorious Pictures. Case in point: We've spotted 2 warning signs for Notorious Pictures you should be aware of, and 1 of them is a bit concerning.
But note: Notorious Pictures 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.