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Aviva plc (LON:AV.) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.4%, resulting in a UK£541m rise in the company's market capitalisation. As a result, their original purchase of UK£936k worth of stock is now worth UK£1.0m.
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.
View our latest analysis for Aviva
The Last 12 Months Of Insider Transactions At Aviva
The Group CEO & Executive Director Amanda Blanc made the biggest insider purchase in the last 12 months. That single transaction was for UK£502k worth of shares at a price of UK£3.80 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£4.44. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Aviva insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Aviva is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Aviva Insiders Bought Stock Recently
It's good to see that Aviva insiders have made notable investments in the company's shares. In total, insiders bought UK£513k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Aviva
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.07% of Aviva shares, worth about UK£11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Aviva Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Aviva 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 Aviva. For example, Aviva has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.