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Over the last year, a good number of insiders have significantly increased their holdings in AJ Bell plc (LON:AJB). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for AJ Bell
AJ Bell Insider Transactions Over The Last Year
The insider Fergus Lyons made the biggest insider purchase in the last 12 months. That single transaction was for UK£1.6m worth of shares at a price of UK£4.48 each. That means that an insider was happy to buy shares at above the current price of UK£3.24. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 1.13m shares for UK£4.8m. On the other hand they divested 16.07k shares, for UK£66k. In the last twelve months there was more buying than selling by AJ Bell insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
AJ Bell 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.
AJ Bell Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at AJ Bell, over the last three months. In fact, three insiders bought UK£1.0m worth of shares. But we did see Group Legal Services Director Christopher Robinson sell shares worth UK£14k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AJ Bell insiders own 28% of the company, currently worth about UK£372m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.