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Multiple insiders secured a larger position in Prudential plc (LON:PRU) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Prudential
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Anil Wadhwani bought UK£620k worth of shares at a price of UK£7.38 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£8.12. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Prudential share holders is that insiders were buying at near the current price.
In the last twelve months Prudential insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Prudential
Prudential is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Prudential Insiders Bought Stock Recently
Over the last quarter, Prudential insiders have spent a meaningful amount on shares. Overall, two insiders shelled out UK£158k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.03% of Prudential shares, worth about UK£5.3m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Prudential Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Prudential insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.