Yahoo Finance Avon Protection Insiders Placed Bullish Bets Worth US$638.9k
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Avon Protection plc (LON:AVON), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Avon Protection
Avon Protection Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Mark Sclater bought UK£212k worth of shares at a price of UK£7.00 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£7.50. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Avon Protection insiders decided to buy shares at close to current prices.
In the last twelve months Avon Protection insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Avon Protection Insiders Bought Stock Recently
Over the last quarter, Avon Protection insiders have spent a meaningful amount on shares. In total, insiders bought UK£457k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
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. Based on our data, Avon Protection insiders have about 0.5% of the stock, worth approximately UK£1.2m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Avon Protection Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Avon Protection insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Avon Protection has 2 warning signs and it would be unwise to ignore these.
But note: Avon Protection 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
