U.S. Markets closed

Have Insiders Been Buying Barclays PLC (LON:BARC) Shares?

Simply Wall St

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Barclays PLC (LON:BARC), you may well want to know whether insiders have been buying or selling.

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, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. 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'.

Check out our latest analysis for Barclays

The Last 12 Months Of Insider Transactions At Barclays

In the last twelve months, the biggest single purchase by an insider was when Group CEO & Executive Director James Staley bought UK£294k worth of shares at a price of UK£1.50 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£1.72. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Barclays insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 886125 shares worth UK£1.4m. On the other hand they divested 175000 shares, for UK£284k. In total, Barclays insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

LSE:BARC Recent Insider Trading, December 2nd 2019

Barclays is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Barclays Have Sold Stock Recently

The last quarter saw substantial insider selling of Barclays shares. Specifically, Group General Counsel Robert Hoyt ditched UK£85k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership of Barclays

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 0.07% of Barclays shares, worth about UK£22m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Barclays Insiders?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're happy enough to look past some selling. Of course, the future is what matters most. So if you are interested in Barclays, you should check out this free report on analyst forecasts for the company.

But note: Barclays 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 editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.