Insiders of Coats Group plc (LON:COA) reaped rewards after their US$612k investment jumped another US$19k

Coats Group plc (LON:COA) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 5.1%, resulting in a UK£51m rise in the company’s market capitalisation. As a result, their original purchase of US$612k worth of stock is now worth US$631k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out the opportunities and risks within the GB Luxury industry.

Coats Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board David Gosnell bought UK£205k worth of shares at a price of UK£0.66 per share. That implies that an insider found the current price of UK£0.66 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Coats Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Coats Group Have Bought Stock Recently

It’s good to see that Coats Group insiders have made notable investments in the company’s shares. In total, insiders bought UK£358k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.

Does Coats Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Coats Group insiders own 0.4% of the company, worth about UK£4.8m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

So What Do The Coats Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Coats Group insiders are reasonably well aligned, and optimistic for the future. 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. At Simply Wall St, we found 2 warning signs for Coats Group that deserve your attention before buying any shares.

But note: Coats Group 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.

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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.