Favourable Signals For Totally: Numerous Insiders Acquired Stock

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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Totally plc (LON:TLY), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Totally

The Last 12 Months Of Insider Transactions At Totally

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Simon Stilwell for UK£61k worth of shares, at about UK£0.062 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.077. 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.

Totally insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Totally is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Totally Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Totally. Insiders bought UK£25k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Totally

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Totally insiders own 8.6% of the company, worth about UK£1.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Totally Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. 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 Totally insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Totally. Case in point: We've spotted 2 warning signs for Totally you should be aware of, and 1 of these is significant.