In This Article:
Over the last year, a good number of insiders have significantly increased their holdings in Reece Limited (ASX:REH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Reece
The Last 12 Months Of Insider Transactions At Reece
The Executive Director Leslie Wilson made the biggest insider purchase in the last 12 months. That single transaction was for AU$19m worth of shares at a price of AU$18.83 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$26.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Reece insiders may have bought shares in the last year, but they didn't sell any. 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 undervalued small cap companies that insiders are buying.
Have Reece Insiders Traded Recently?
There was some insider buying at Reece over the last quarter. MD, Group President & Executive Director Sasha Nikolic purchased AU$8.1k worth of shares in that period. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Reece insiders own about AU$2.0b worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Reece Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Reece insiders think the business has merit. 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.