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How Many CyanConnode Holdings plc (LON:CYAN) Shares Did Insiders Buy, In The Last Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in CyanConnode Holdings plc (LON:CYAN).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for CyanConnode Holdings

The Last 12 Months Of Insider Transactions At CyanConnode Holdings

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director William Johns-Powell bought UK£77k worth of shares at a price of UK£0.024 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.054. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 4.00m shares worth UK£121k. But insiders sold 3.20m shares worth UK£77k. In the last twelve months there was more buying than selling by CyanConnode Holdings insiders. The average buy price was around UK£0.03. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and 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!

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insider-trading-volume

CyanConnode Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

CyanConnode Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at CyanConnode Holdings. Overall, five insiders shelled out UK£44k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Does CyanConnode Holdings Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that CyanConnode Holdings insiders own about UK£1.3m worth of shares (which is 14% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At CyanConnode Holdings Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think CyanConnode Holdings insiders are doubting the company. 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. For example, CyanConnode Holdings has 5 warning signs (and 2 which are significant) we think you should know about.

But note: CyanConnode Holdings 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, but not derivative transactions.

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.

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