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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in IQVIA Holdings Inc. (NYSE:IQV).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
The Last 12 Months Of Insider Transactions At IQVIA Holdings
In the last twelve months, the biggest single purchase by an insider was when Independent Director John Danhakl bought US$11m worth of shares at a price of US$177 per share. So it's clear an insider wanted to buy, at around the current price, which is US$193. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the IQVIA Holdings insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 73.45k shares for US$13m. On the other hand they divested 58.26k shares, for US$10m. In the last twelve months there was more buying than selling by IQVIA Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
IQVIA Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at IQVIA Holdings Have Bought Stock Recently
At IQVIA Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. Independent Director John Danhakl spent US$11m on stock. But Independent Director Ronald Rittenmeyer sold shares worth US$1.7m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does IQVIA Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IQVIA Holdings insiders own 0.7% of the company, currently worth about US$254m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At IQVIA Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about IQVIA Holdings. Nice! 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. At Simply Wall St, we found 1 warning sign for IQVIA Holdings that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
This article by Simply Wall St is general in nature. 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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