With GetBusy Up 11%, Insider Buyers Count Their Returns

Last week, GetBusy plc (LON:GETB) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a UK£3.5m increase in the company’s market worth, implying a 16% gain on their initial purchase. As a result, their original purchase of UK£350.2k worth of stock is now worth UK£406.7k.

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.

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Notably, that recent purchase by Clive Rabie is the biggest insider purchase of GetBusy shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is UK£0.73. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for GetBusy share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 557.12k shares for UK£350k. On the other hand they divested 6.86k shares, for UK£4.0k. In the last twelve months there was more buying than selling by GetBusy insiders. 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!

Check out our latest analysis for GetBusy

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

There has been significantly more insider buying, than selling, at GetBusy, over the last three months. Insiders spent UK£304k on shares. On the other hand, CEO & Executive Director Daniel Rabie netted UK£4.0k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

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. Insiders own 35% of GetBusy shares, worth about UK£13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest GetBusy insiders are well aligned, and that they may think the share price is too low. 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. When we did our research, we found 5 warning signs for GetBusy (3 are concerning!) that we believe deserve your full attention.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.