We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Imperial Brands PLC (LON:IMB).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Imperial Brands

The Last 12 Months Of Insider Transactions At Imperial Brands

Over the last year, we can see that the biggest insider purchase was by CFO & Executive Director Oliver Tant for UK£159k worth of shares, at about UK£15.77 per share. That means that even when the share price was higher than UK£14.58 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months Imperial Brands insiders were buying shares, but not selling. 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!

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.

Imperial Brands Insiders Bought Stock Recently

Over the last quarter, Imperial Brands insiders have spent a meaningful amount on shares. Non-Executive Director Robert Kunze-Concewitz spent UK£95k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Imperial Brands 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.07% of Imperial Brands shares, worth about UK£9.4m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.