Trade Alert: The Senior Independent Non-Executive Director Of GlaxoSmithKline plc (LON:GSK), Manvinder Banga, Has Just Spent UK£503k Buying 60% More Shares

Simply Wall St
·3 min read

GlaxoSmithKline plc (LON:GSK) shareholders (or potential shareholders) will be happy to see that the Senior Independent Non-Executive Director, Manvinder Banga, recently bought a whopping UK£503k worth of stock, at a price of UK£13.76. That purchase boosted their holding by 60%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for GlaxoSmithKline

GlaxoSmithKline Insider Transactions Over The Last Year

Notably, that recent purchase by Manvinder Banga is the biggest insider purchase of GlaxoSmithKline shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£13.42). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

In the last twelve months insiders purchased 61.54k shares for UK£865k. But insiders sold 30.59k shares worth UK£477k. In the last twelve months there was more buying than selling by GlaxoSmithKline insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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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 GlaxoSmithKline Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. GlaxoSmithKline insiders own about UK£37m worth of shares. That equates to 0.06% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At GlaxoSmithKline Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in GlaxoSmithKline shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of GlaxoSmithKline.

Of course GlaxoSmithKline 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, but not derivative transactions.

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. 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.

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