Those following along with Spectrum Brands Holdings, Inc. (NYSE:SPB) will no doubt be intrigued by the recent purchase of shares by David Maura, Executive Chairman & CEO of the company, who spent a stonking US$1m on stock at an average price of US$59.84. While that only increased their holding size by 4.5%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Spectrum Brands Holdings
Notably, that recent purchase by Executive Chairman & CEO David Maura was not the only time they bought Spectrum Brands Holdings shares this year. Earlier in the year, they paid US$50.43 per share in a US$1.0m purchase. So it's clear an insider wanted to buy, at around the current price, which is US$60.42. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Spectrum Brands Holdings share holders is that insiders were buying at near the current price.
In the last twelve months Spectrum Brands Holdings insiders were buying shares, but not selling. The average buy price was around US$56.02. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Spectrum Brands Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Spectrum Brands 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Spectrum Brands Holdings shares, worth about US$88m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Spectrum Brands Holdings Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Spectrum Brands Holdings we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Spectrum Brands Holdings.
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.
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