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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Aptiv PLC (NYSE:APTV).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Aptiv
Over the last year, we can see that the biggest insider sale was by Independent Director Mark Frissora for US$803k worth of shares, at about US$103 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$76.22. So it may not shed much light on insider confidence at current levels.
Over the last year, we can see that insiders have bought 12.56k shares worth US$873k. On the other hand they divested 15.29k shares, for US$1.5m. Over the last year we saw more insider selling of Aptiv shares, than buying. The sellers received a price of around US$97.68, on average. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of US$76.22. 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!
Aptiv is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Aptiv Have Bought Stock Recently
Over the last quarter, Aptiv insiders have spent a meaningful amount on shares. Specifically, Kevin Clark bought US$763k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership of Aptiv
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Aptiv insiders own 0.7% of the company, worth about US$134m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Aptiv Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider, suggests they are well aligned and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 firstname.lastname@example.org.