Insiders sitting comfortably on a UK£34k profit after buying Rentokil Initial plc (LON:RTO) stock worth UK£833k last year
Rentokil Initial plc (LON:RTO) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 3.8% decline in the stock price. Even after accounting for the recent loss, the UK£833k worth of stock purchased by them is now worth UK£867k or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Rentokil Initial
Rentokil Initial Insider Transactions Over The Last Year
The CEO & Executive Director Andrew Ransom made the biggest insider purchase in the last 12 months. That single transaction was for UK£242k worth of shares at a price of UK£5.38 each. So it's clear an insider wanted to buy, at around the current price, which is UK£5.58. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Rentokil Initial insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rentokil Initial 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.
Rentokil Initial Insiders Bought Stock Recently
It's good to see that Rentokil Initial insiders have made notable investments in the company's shares. Overall, five insiders shelled out UK£833k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Rentokil Initial Boast High Insider Ownership?
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. We usually like to see fairly high levels of insider ownership. Rentokil Initial insiders own about UK£11m worth of shares. That equates to 0.1% of the company. 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 Rentokil Initial Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Rentokil Initial insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Rentokil Initial.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
