Those who follow with Playtech plc (LON: PTEC) will no doubt be intrigued by the recent share purchase by insider Hao Liu, who spent £ 3.4million on shares at an average price of £ 6.79. It is undeniable that a purchase of this magnitude suggests conviction for a better future, although we note that proportionately, this only increased their stake by 8.6%.
See our latest review for Playtech
Playtech Insider Transactions in the Last Year
Notably, this recent purchase by Hao Liu is the biggest insider buy of Playtech shares we’ve seen in the past year. This means that an insider was happy to buy shares above the current price of UK £ 6.73. While their opinion may have changed since the purchase, it at least suggests that they have confidence in the future of the business. We always take careful note of the price insiders pay when they buy stocks. It is generally more encouraging if they paid above the current price, as it suggests that they have seen value, even at higher levels.
Playtech insiders may have bought shares in the past year, but they haven’t sold any. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
Playtech is not the only one to buy. So take a look at this free list of growing companies with insider buying.
Many investors like to check how well a company is owned by insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Based on our data, Playtech insiders own around 0.2% of the shares, worth around £ 3.4million. I generally like to see higher levels of ownership.
What might insider trading at Playtech tell us?
It’s certainly positive to see the recent insider buy. And longer-term insider trading gives us confidence as well. While overall insider ownership levels are lower than we’d like to see, the trading history implies that Playtech insiders are reasonably well aligned and bullish for the future. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. To help you, we have discovered 5 warning signs (2 are significant!) That you should know before buying Playtech stock.
Sure Playtech might not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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