Jayne Almond Buys Handful Of Shares In Arbuthnot Banking Group
Even if it's not a huge purchase, we think it was good to see that Jayne Almond, the Independent Non-Executive Director of Arbuthnot Banking Group PLC (LON:ARBB) recently shelled out UK£77k to buy stock, at UK£8.92 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for Arbuthnot Banking Group
The Last 12 Months Of Insider Transactions At Arbuthnot Banking Group
In the last twelve months, the biggest single purchase by an insider was when Group COO Andrew Salmon bought UK£296k worth of shares at a price of UK£9.35 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£9.15). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays 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. We note that Andrew Salmon was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid UK£373k for 40.32k shares. But insiders sold 31.70k shares worth UK£296k. Overall, Arbuthnot Banking Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Arbuthnot Banking Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Arbuthnot Banking Group insiders own 47% of the company, currently worth about UK£71m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Arbuthnot Banking Group Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Arbuthnot Banking Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arbuthnot Banking Group. To that end, you should learn about the 3 warning signs we've spotted with Arbuthnot Banking Group (including 1 which makes us a bit uncomfortable).
Of course Arbuthnot Banking Group 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 currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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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.
