We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Reckitt Benckiser Group plc (LON:RB.).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. 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'.

Check out our latest analysis for Reckitt Benckiser Group

The Last 12 Months Of Insider Transactions At Reckitt Benckiser Group

Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Laxman Narasimhan for UK£1m worth of shares, at about UK£58.00 per share. That implies that an insider found the current price of UK£64.94 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Reckitt Benckiser Group share holders is that insiders were buying at near the current price.

In the last twelve months Reckitt Benckiser Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Reckitt Benckiser 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 Reckitt Benckiser Group Have Bought Stock Recently

Over the last quarter, Reckitt Benckiser Group insiders have spent a meaningful amount on shares. We can see that Independent Chairman of the Board Christopher Sinclair paid UK£249k for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership of Reckitt Benckiser Group

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. 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 0.08% of Reckitt Benckiser Group shares, worth about UK£37m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.