Trade Alert: The Global Head of Manufacturing Of Circa Group AS (OB:CIRCA), Philipp Morgenthaler, Has Just Spent €66k Buying 20% More Shares

Even if it’s not a huge purchase, we think it was good to see that Philipp Morgenthaler, the Global Head of Manufacturing of Circa Group AS (OB:CIRCA) recently shelled out kr66k to buy stock, at kr6.60 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.

View our latest analysis for Circa Group

The Last 12 Months Of Insider Transactions At Circa Group

Global Head of Manufacturing Philipp Morgenthaler previously made an even bigger purchase of kr80k worth of shares at a price of kr7.98 per share. That means that an insider was happy to buy shares at above the current price of kr6.53. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Philipp Morgenthaler was the only individual insider to buy during the last year.

Philipp Morgenthaler bought 20.00k shares over the last 12 months at an average price of kr7.29. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Circa Group insiders own about kr101m worth of shares. That equates to 13% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Circa Group Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Circa Group insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Circa Group has 4 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.