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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Benchmark Holdings plc (LON:BMK).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
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 Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Benchmark Holdings
The Last 12 Months Of Insider Transactions At Benchmark Holdings
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Yngve Myhre bought UK£118k worth of shares at a price of UK£0.59 per share. That means that an insider was happy to buy shares at around the current price of UK£0.61. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Benchmark Holdings share holders is that insiders were buying at near the current price.
In the last twelve months Benchmark Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Benchmark Holdings Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Benchmark Holdings. Independent Non-Executive Chairman Peter George shelled out UK£19k for shares in that time. 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.