Insider Spends US$1.2m Buying More Shares In Gates Industrial

Those following along with Gates Industrial Corporation plc (NYSE:GTES) will no doubt be intrigued by the recent purchase of shares by Fredrik Eliasson, Independent Director of the company, who spent a stonking US$1.2m on stock at an average price of US$19.56. Not only is that a big swing, but it increased their holding size by 49%, which is definitely great to see.

View our latest analysis for Gates Industrial

The Last 12 Months Of Insider Transactions At Gates Industrial

Notably, that recent purchase by Fredrik Eliasson is the biggest insider purchase of Gates Industrial shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$19.67. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Gates Industrial insiders bought shares during the last year, they didn't sell. 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!

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

Insider Ownership Of Gates Industrial

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Gates Industrial insiders own about US$80m worth of shares. That equates to 1.6% 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 Do The Gates Industrial Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Gates Industrial shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Gates Industrial and understanding this should be part of your investment process.

But note: Gates Industrial may not be the best stock to buy. So take a peek at this free list 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 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.