Even if it's not a huge purchase, we think it was good to see that César Cernuda Rego, the Independent Director of Gestamp Automoción, S.A. (BME:GEST) recently shelled out €52k to buy stock, at €3.68 per share. Even though that isn't a massive buy, it did increase their holding by 140%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Gestamp Automoción
Notably, that recent purchase by Independent Director César Cernuda Rego was not the only time they bought Gestamp Automoción shares this year. Earlier in the year, they paid €5.45 per share in a €55k purchase. That means that an insider was happy to buy shares at above the current price of €3.68. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. César Cernuda Rego was the only individual insider to buy over the year.
César Cernuda Rego bought 24.00k shares over the last 12 months at an average price of €4.42. The chart below shows insider transactions (by individuals) over the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Gestamp Automoción Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Gestamp Automoción insiders have about 0.2% of the stock, worth approximately €3.4m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Gestamp Automoción Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Gestamp Automoción insiders are expecting a bright future. 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.
But note: Gestamp Automoción 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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