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Washington H. Soul Pattinson and Company Limited (ASX:SOL) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board, Robert Millner, recently bought a whopping AU$6.9m worth of stock, at a price of AU$34.70. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.3%.
Check out our latest analysis for Washington H. Soul Pattinson
Washington H. Soul Pattinson Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman of the Board Robert Millner was not the only time they bought Washington H. Soul Pattinson shares this year. They previously made an even bigger purchase of AU$13m worth of shares at a price of AU$33.65 per share. That implies that an insider found the current price of AU$35.43 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. Happily, the Washington H. Soul Pattinson insiders decided to buy shares at close to current prices.
In the last twelve months Washington H. Soul Pattinson 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Washington H. Soul Pattinson insiders own 5.2% of the company, currently worth about AU$676m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Washington H. Soul Pattinson Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Washington H. Soul Pattinson. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Washington H. Soul Pattinson (including 1 which is significant).