The Motley Fool

UK shares: insiders own this stock! Should I buy shares?

The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.
Image source: Getty Images

On the lookout for the best UK shares for my portfolio, I pay attention when insiders own lots of shares in a firm. This seems to be the case with TPXimpact Holdings (LSE:TPX). Should I look to add some shares to my holdings too? Let’s take a closer look.

IT services provider

There is a high likelihood you may not have heard the name TPXimpact Holdings before. This is because until late last year, the company was known as Panoply. TPXimpact provides IT services to governmental departments, the public sector, and charities. It does this through the use of cutting edge AI-driven technology.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

TPXimpact only floated on the FTSE AIM in late 2018 for just over 80p per share. As I write, shares are currently trading for 242p, which is close to a 200% increase! In 2021 alone, the shares increased by 25%. With insiders owning shares and some clear momentum, let’s decide if I should add some shares to my portfolio.

For and against

FOR: TPXimpact’s management team is a positive for me. It was founded by entrepreneur Neal Gandhi and Oliver Rigby. Gandhi has experience of tech firms as he previously co-founded four firms and sold them for a healthy profit. He is also the largest shareholder in TPXimpact. When insiders own shares, this buoys my own investment case. Those running the firm usually invest their money if they believe the share price is on the rise and performance will match it.

AGAINST: Competition in the IT and tech world is intense. There are many UK shares that offer me exposure to the tech world. Some of these are better known and more established with similar technology solutions. There is always the chance that established firms can out muscle and outmanoeuvre smaller lesser known firms like TPXimpact.

FOR: TPXimpact has a history of acquisitions. I particularly like firms that acquire competitors and other firms to enhance their own offering and boost their own chances of success. Most recently TPXimpact acquired RedCortex Ltd which offers access to the Welsh public sector market as well as its proprietary knowledge and software. TPXimpact’s performance has been impressive recently too. This was signified by a interim report released in December. It reported that revenue increased by 77% for the six months ended 30 September. It also confirmed profit was up compared to the same period last year. A healthy cash rich balance also led to an interim dividend.

AGAINST: Gandhi has a history of building up and selling companies. Could this happen with TPXimpact? If so, would the firm’s momentum be the same in terms of performance and returns? This is a credible risk I must be aware of.

A UK share I like

Overall, I like TPXimpact Holdings. At current levels I would add shares to my portfolio. The digital revolution is in full effect and TPXimpact seems to have created a market for itself by providing important tech for the public sector. Key people in the firm have experience in guiding tech firms towards success and performance and acquisitions are on the up too. The outlook ahead is exciting.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.