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3i Group plc (LON:III) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 5.9% resulting in a UK£781m addition to the company’s market value. As a result, the stock they originally bought for UK£69m is now worth UK£86m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for 3i Group
The Last 12 Months Of Insider Transactions At 3i Group
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Simon Borrows for UK£59m worth of shares, at about UK£11.78 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£14.54. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 5.91m shares worth UK£69m. But insiders sold 5.90m shares worth UK£69m. In total, 3i Group insiders bought more than they sold over the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does 3i Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 3i Group insiders own 1.8% of the company, currently worth about UK£251m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At 3i Group Tell Us?
It doesn't really mean much that no insider has traded 3i Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like 3i Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for 3i Group (2 are a bit concerning) you should be aware of.