Backing companies where directors have ‘skin in the game’ can potentially be a decent strategy for investing.
After all, company directors know the state of their business better than anyone.
Many investors like to keep a keen eye out for those that are buying and selling and often follow their lead in and out of those companies.
Every Thursday, Shares will roundup the biggest director deals over the past week.
The biggest deal this week comes from FTSE 250 food packing firm Hilton Food (HFG), where chief executive Philip Heffer sold 360,000 of his shares in the business last Thursday for £10 apiece.
The transaction netted him £3.6m, though according to the company’s latest annual report, Heffer still owns around 3.8m shares in the business, worth around £40m.
The Times reports that Heffer is using the money to fund a personal investment.
The firm performed better than expected in its half year results in September, with revenue up 5.6% to £912.1m and adjusted operating profit rising 13.3% to £26.7m.
Also among director dealings, the finance chief of advertising technology company Tremor International (TRMR:AIM) – previously known as Taptica – offloaded a sizeable chunk of shares after relocating to the US.
Yaniv Carmi sold 637,477 shares at 148p each for a total value of £943,466. The company said this was due to personal tax issues relating to his relocation from Israel as recommended by his tax advisers.
One of self-storage company Lok’n Store Group’s (LOK:AIM) non-executive directors, veteran investor Charles Peal, bought 97,369 shares at a price of 563.6p each, for a total transaction amount of £548,772.
In its full year results announced on Monday, the firm reported a 10.3% rise in group revenue to £16.95m, with net profit up 48% to £5.56m.
For a full list of the week’s most significant director trades, click here.