Investors who take an interest in Bank of Queensland Limited (ASX:BOQ) should definitely note that the Non-Executive Independent Chairman, Patrick Newton Allaway, recently paid AU$7.85 per share to buy AU$471k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 120%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Bank of Queensland
Notably, that recent purchase by Patrick Newton Allaway is the biggest insider purchase of Bank of Queensland shares that we've seen in the last year. That means that even when the share price was higher than AU$7.42 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay 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.
While Bank of Queensland insiders bought shares last year, they didn't sell. You can see the insider transactions (by 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!
Bank of Queensland 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.
Does Bank of Queensland Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Bank of Queensland insiders own 0.2% of the company, worth about AU$5.0m. I generally like to see higher levels of ownership.
So What Do The Bank of Queensland Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Bank of Queensland insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Bank of Queensland, 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.
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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