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In the last year, multiple insiders have substantially increased their holdings of Arbuthnot Banking Group PLC (LON:ARBB) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Arbuthnot Banking Group
The Last 12 Months Of Insider Transactions At Arbuthnot Banking Group
The Chairman & CEO Henry Angest made the biggest insider purchase in the last 12 months. That single transaction was for UK£682k worth of shares at a price of UK£9.75 each. That implies that an insider found the current price of UK£10.10 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Arbuthnot Banking Group share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 113.26k shares for UK£1.1m. But insiders sold 31.70k shares worth UK£296k. In the last twelve months there was more buying than selling by Arbuthnot Banking Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Arbuthnot Banking Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Arbuthnot Banking Group
Many investors like to check how much of a company is owned by 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. It's great to see that Arbuthnot Banking Group insiders own 61% of the company, worth about UK£101m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Arbuthnot Banking Group Insiders?
It doesn't really mean much that no insider has traded Arbuthnot Banking Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Arbuthnot Banking Group insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Arbuthnot Banking Group has 1 warning sign we think you should be aware of.