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Over the last year, a good number of insiders have significantly increased their holdings in Indivior PLC (LON:INDV). 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Indivior
Over the last year, we can see that the biggest insider purchase was by insider Robert Schriesheim for UK£399k worth of shares, at about UK£6.78 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£7.59. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Indivior insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£7.56 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
See our latest analysis for Indivior
Indivior is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Indivior Have Bought Stock Recently
Over the last quarter, Indivior insiders have spent a meaningful amount on shares. In total, insiders bought UK£1.0m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of Indivior
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. We usually like to see fairly high levels of insider ownership. Insiders own 3.8% of Indivior shares, worth about UK£36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Indivior Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Indivior we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Indivior. At Simply Wall St, we've found that Indivior has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.