Insiders were net buyers of AVEVA Group plc's (LON:AVV ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for AVEVA Group
AVEVA Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Peter Herweck bought UK£479k worth of shares at a price of UK£35.48 per share. That means that an insider was happy to buy shares at above the current price of UK£21.17. 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. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Peter Herweck was the only individual insider to buy during 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!
AVEVA Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at AVEVA Group Have Sold Stock Recently
The last three months saw significant insider selling at AVEVA Group. Specifically, CTO and Executive VP of R&D Andrew McCloskey ditched UK£159k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.08% of AVEVA Group shares, worth about UK£5.4m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At AVEVA Group Tell Us?
An insider sold AVEVA Group shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AVEVA Group. Every company has risks, and we've spotted 2 warning signs for AVEVA Group you should know about.