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Are Insiders Buying Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (BME:BME) Stock?

Simply Wall St

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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. (BME:BME).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'

Check out our latest analysis for Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros

Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Antonio Jose Zoido Martínez bought €202k worth of shares at a price of €22.76 per share. That means that an insider was happy to buy shares at above the current price of €22.22. 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders bought 14239 shares for a total of €333k. Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

BME:BME Recent Insider Trading, July 2nd 2019

Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros. In total, insiders bought €290k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership of Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros insiders own 0.2% of the company, worth about €3.0m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros insiders are reasonably well aligned, and optimistic for the future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros.

Of course Bolsas y Mercados Españoles Sociedad Holding de Mercados y Sistemas Financieros 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 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.

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. Thank you for reading.