Allegion President Acquires 140% More Stock
Those following along with Allegion plc (NYSE:ALLE) will no doubt be intrigued by the recent purchase of shares by John Stone, President of the company, who spent a stonking US$2.0m on stock at an average price of US$117. That purchase boosted their holding by 140%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Check out our latest analysis for Allegion
The Last 12 Months Of Insider Transactions At Allegion
In fact, the recent purchase by John Stone was the biggest purchase of Allegion shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$115. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. John Stone was the only individual insider to buy during the last year.
John Stone purchased 30.00k shares over the year. The average price per share was US$112. 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 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.
Insider Ownership Of Allegion
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Allegion insiders own about US$35m worth of shares. That equates to 0.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Allegion Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Allegion insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Allegion you should be aware of.
But note: Allegion may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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