Read This Before Selling Galliford Try plc (LON:GFRD) Shares
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Galliford Try plc (LON:GFRD), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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Galliford Try Insider Transactions Over The Last Year
CEO of Partnerships & Regeneration and Member of Executive Board Stephen Teagle made the biggest insider purchase in the last 12 months. That single transaction was for UK£57k worth of shares at a price of UK£6.33 each. So it’s clear an insider wanted to buy, at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
Happily, we note that in the last year insiders bought 19.68k shares for a total of UK£127k. In the last twelve months there was more buying than selling by Galliford Try insiders. They paid about UK£6.44 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of UK£7.42. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Galliford Try 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.
Insiders at Galliford Try Have Bought Stock Recently
It’s good to see that Galliford Try insiders have made notable investments in the company’s shares. In total, insiders bought UK£109k worth of shares in that time, and we didn’t record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Galliford Try insiders have about 0.3% of the stock, worth approximately UK£2.7m. We prefer to see high levels of insider ownership.
So What Do The Galliford Try Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Galliford Try insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Galliford Try.
Of course Galliford Try may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
