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Insider Buying: The Greenhill & Co., Inc. (NYSE:GHL) Chairman & CEO Just Bought 2.7% More Shares

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Simply Wall St
·3 min read
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Those following along with Greenhill & Co., Inc. (NYSE:GHL) will no doubt be intrigued by the recent purchase of shares by Scott Bok, Chairman & CEO of the company, who spent a stonking US$533k on stock at an average price of US$10.66. While that only increased their holding size by 2.7%, it is still a big swing by our standards.

Check out our latest analysis for Greenhill

The Last 12 Months Of Insider Transactions At Greenhill

In fact, the recent purchase by Chairman & CEO Scott Bok was not their only acquisition of Greenhill shares this year. They previously made an even bigger purchase of US$1.3m worth of shares at a price of US$11.21 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.66). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Scott Bok was the only individual insider to buy shares in the last twelve months.

Scott Bok bought 264.58k shares over the last 12 months at an average price of US$10.97. The chart below shows insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

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 Greenhill Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 25% of Greenhill shares, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Greenhill Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Greenhill shares, given these transactions (along with notable insider ownership of the company). 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. For example - Greenhill has 3 warning signs we think you should be aware of.

Of course Greenhill may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.