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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Sabre Corporation's (NASDAQ:SABR) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Sabre
Sabre Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Kurt Ekert bought US$167k worth of shares at a price of US$2.57 per share. We do like to see buying, but this purchase was made at well below the current price of US$3.42. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 205.30k shares for US$588k. On the other hand they divested 10.00k shares, for US$28k. In the last twelve months there was more buying than selling by Sabre insiders. The average buy price was around US$2.86. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Sabre Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Sabre. Independent Non-Executive Chairman Gail Mandel purchased US$36k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
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. Sabre insiders own about US$13m worth of shares. That equates to 1.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.