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Are Insiders Buying International Consolidated Airlines Group, S.A. (LON:IAG) Stock?

Simply Wall St

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell International Consolidated Airlines Group, S.A. (LON:IAG), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

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'.

View our latest analysis for International Consolidated Airlines Group

International Consolidated Airlines Group Insider Transactions Over The Last Year

CEO & Executive Director William Walsh made the biggest insider purchase in the last 12 months. That single transaction was for UK£412k worth of shares at a price of UK£5.54 each. That means that even when the share price was higher than UK£5.39 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders bought 101k shares for a total of UK£558k. In the last twelve months International Consolidated Airlines Group insiders were buying shares, but not selling. 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!

LSE:IAG Recent Insider Trading, April 24th 2019

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

Insiders at International Consolidated Airlines Group Have Bought Stock Recently

Over the last quarter, International Consolidated Airlines Group insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out €558k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership of International Consolidated Airlines Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of International Consolidated Airlines Group shares, worth about UK£26m. 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 International Consolidated Airlines Group Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in International Consolidated Airlines Group shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in International Consolidated Airlines Group, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.