Eight months is a long time in the stockmarket. Questor tipped Morgan Sindall (MGNS, 940p) only in September last year at 16.60p (see article here).

Now Morgan Sindall start to look interesting. The CEO Paul Smith joined the group in 2003, but has only in the last few months started to invest in the group.

In March Smith exercised an option to buy 100,000 shares at 207p. In 19 out of 20 options exercising cases, the director will sell 40% or so to cover his or her tax liability. Smith didn’t sell any shares.

Yesterday Smith bought 34,000 shares at 967p, investing £327,000.

So in the last three months the CEO of Morgan Sindall invested £527,000 and increased his shareholding from about 66,000 shares to 205,000 shares. Certainly an interesting and noteworthy move.

I am now starting to rank my interpretation of directors deals by ‘signal strength’.

Morgan Sindall gets a ‘medium strength signal‘ rating because of the size and consistency of these purchases, but doesn’t make a strong signal due to the lack of support for Mr Smith that would be seen if other directors bought shares.