Insiders were net buyers of Saga plc's (LON:SAGA ) stock during the past year. That is, insiders bought more stock than they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Saga

Saga Insider Transactions Over The Last Year

The Non-Executive Chairman Roger De Haan made the biggest insider purchase in the last 12 months. That single transaction was for UK£1m worth of shares at a price of UK£2.93 each. That means that an insider was happy to buy shares at above the current price of UK£0.79. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Roger De Haan was the only individual insider to buy shares in the last twelve months.

Roger De Haan bought 362.17k shares over the last 12 months at an average price of UK£2.90. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below! insider-trading-volume

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

Insider Ownership Of Saga

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Saga insiders own about UK£29m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.



So What Does This Data Suggest About Saga Insiders?

The fact that there have been no Saga insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Saga and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Saga. At Simply Wall St, we found 1 warning sign for Saga that deserve your attention before buying any shares.

But note: Saga may not be the best stock to buy. So take a peek at this freelist 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.

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.

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