In This Article:
The recent price decline of 8.9% in boohoo group plc's (LON:BOO) stock may have disappointed insiders who bought UK£740k worth of shares at an average price of UK£3.21 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£402k, which is not what they expected.
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.
View our latest analysis for boohoo group
boohoo group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Iain McDonald for UK£335k worth of shares, at about UK£3.35 per share. That means that an insider was happy to buy shares at above the current price of UK£1.74. 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
boohoo group insiders may have bought shares in the last year, but they didn't sell any. 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!
boohoo group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at boohoo group Have Bought Stock Recently
We saw some boohoo group insider buying shares in the last three months. Independent Deputy Chairman of the Board & Senior Independent Director Brian Small shelled out UK£29k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of boohoo group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that boohoo group insiders own 20% of the company, worth about UK£435m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.