Whilst it may not be a huge deal, we thought it was good to see that the Repsol, S.A. (BME:REP) CEO & Executive Director, Josu Jon Imaz San Miguel, recently bought €72k worth of stock, for €14.36 per share. That might not be a big purchase but it only increased their holding by 1.6%, and could be interpreted as a good sign.
Repsol Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Executive Director Josu Jon Imaz San Miguel was not their only acquisition of Repsol shares this year. They previously made an even bigger purchase of €441k worth of shares at a price of €14.41 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being €14.35). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months Repsol insiders were buying shares, but not selling. They paid about €8.10 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Repsol insiders own about €16m worth of shares. That equates to 0.08% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Repsol Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Repsol we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Repsol, you should check out this free report on analyst forecasts for the company.
But note: Repsol 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 firstname.lastname@example.org. 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.
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