Even with Seven Group Holdings Limited (ASX:SVW) stock down 4.5% this week, insiders who bought recently netted around AU$55k
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Insiders who purchased Seven Group Holdings Limited (ASX:SVW) shares in the past 12 months are unlikely to be deeply impacted by the stock's 4.5% decline over the past week. After taking the recent loss into consideration, the AU$428k worth of stock they bought is now worth AU$483k, indicating that their investment yielded a positive return.
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.
See our latest analysis for Seven Group Holdings
Seven Group Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Rachel Argaman bought AU$157k worth of shares at a price of AU$24.15 per share. That means that an insider was happy to buy shares at above the current price of AU$23.10. 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 always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Seven Group Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around AU$20.45. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Seven Group Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Seven Group Holdings. Specifically, Independent Non-Executive Director Rachel Argaman bought AU$157k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Seven Group Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Seven Group Holdings insiders own 0.5% of the company, worth about AU$43m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.