Even if it's not a huge purchase, we think it was good to see that Moran Weizer, the CEO & Executive Director of Playtech plc (LON:PTEC) recently shelled out UK£53k to buy stock, at UK£2.78 per share. Although the purchase is not a big one, increasing their shareholding by only 7.9%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Playtech
In fact, the recent purchase by CEO & Executive Director Moran Weizer was not their only acquisition of Playtech shares this year. They previously made an even bigger purchase of UK£180k worth of shares at a price of UK£1.34 per share. We do like to see buying, but this purchase was made at well below the current price of UK£3.05. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Playtech insiders were buying shares, but not selling. The average buy price was around UK£1.57. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Playtech is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Playtech
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Playtech insiders have about 0.2% of the stock, worth approximately UK£1.4m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Playtech Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Playtech insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Playtech. Be aware that Playtech is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course Playtech may not be the best stock to buy. So you may wish to see this free collection 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. 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. Thank you for reading.