Have Insiders Been Buying Aviva plc (LON:AV.) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. 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 Aviva plc (LON:AV.).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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Aviva Insider Transactions Over The Last Year
Executive Director & CEO of UK Insurance Andrew Briggs made the biggest insider purchase in the last 12 months. That single transaction was for UK£106k worth of shares at a price of UK£4.23 each. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
Happily, we note that in the last year insiders bought 51.81k shares for a total of UK£219k. Overall, Aviva insiders were net buyers last year. They paid about UK£4.23 on average. This is nice to see since it implies that insiders might see value around current prices (around UK£4.17). You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Aviva Insiders Bought Stock Recently
It’s good to see that Aviva insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought UK£165k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Aviva Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Aviva insiders own 0.09% of the company, worth about UK£15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Aviva Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Aviva we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Aviva, you should check out this free report on analyst forecasts for the company.
But note: Aviva 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
