Despite QinetiQ Group plc (LON:QQ.) shares falling 3.5% this week, insiders who bought recently have made a profit of £20,000

Insiders who bought QinetiQ Group plc (LON:QQ.) stocks over the last 12 months should not be hard hit by the stock’s 3.5% decline over the past week. After accounting for the recent loss, the £198,000 of shares they bought are now worth £218,000, suggesting a good return on their investment.

While insider transactions aren’t the most important thing when it comes to long-term investing, we think it makes perfect sense to keep an eye on insider activity.

Check out our latest analysis for QinetiQ Group

QinetiQ Group insider transactions over the past year

In the last 12 months, the biggest single buy by an insider was when independent chief executive Neil Johnson bought £133,000 of shares at £2.66 per share. We like to see purchases, but this purchase was made well below its current price of £2.98. Because the shares were purchased at a lower price, this particular purchase doesn’t tell us much about how insiders feel about the current share price.

QinetiQ Group insiders may have bought shares but not sold any in the last year. The chart below shows insider transactions (of companies and individuals) over the last year. If you click on the chart you will see all individual transactions including the stock price, individual and date!

LSE:QQ. Insider trading volume March 21, 2022

QinetiQ Group isn’t the only stock insiders are buying. For those who like to find win investments The for free List of growing companies with recent insider purchases might be just the ticket.

QinetiQ Group insiders recently bought shares

It’s good to see that QinetiQ Group insiders have made notable investments in the company’s stock. More specifically, Lynn Brubaker, Independent Non-Executive Director, bought £38,000 worth of shares during this period and we did not see any sales. This is positive in our book as it implies some trust.

Does QinetiQ Group have a high insider ownership rate?

Another way to test the consistency between a company’s executives and other shareholders is to look at how many shares they own. We usually like to see a fairly high level of inside ownership. Based on our data, insiders own £3.1m worth of shares in QinetiQ Group, around 0.2% of the company. We consider this fairly minor insider ownership.

So what does this data say about the insiders of the QinetiQ group?

Our data shows some insider buying but no selling over the last three months. Overall, the purchase is not worth writing home about. On the positive side, last year’s transactions are encouraging. While we’re not worried about the insider trades, we’d feel more comfortable if they owned more QinetiQ Group stock. In addition to knowing about insider transactions, it is beneficial to identify the risks QinetiQ Group is exposed to. Every business has risks and we have recognized them 2 warning signs for the QinetiQ Group you should know.

Naturally, You might find a fantastic investment by looking elsewhere. So check this out for free List of interesting companies.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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