Yahoo Finance Bullish insiders at Reckitt Benckiser Group plc (LON:RKT) loaded up on UK£809k of stock earlier this year
Over the last year, a good number of insiders have significantly increased their holdings in Reckitt Benckiser Group plc (LON:RKT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Reckitt Benckiser Group
The Last 12 Months Of Insider Transactions At Reckitt Benckiser Group
In the last twelve months, the biggest single sale by an insider was when the insider, Aditya Sehgal, sold UK£648k worth of shares at a price of UK£64.84 per share. That means that an insider was selling shares at around the current price of UK£63.98. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Aditya Sehgal was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 14.21k shares for UK£809k. On the other hand they divested 10.00k shares, for UK£648k. Overall, Reckitt Benckiser Group insiders were net buyers during the last year. You can see the insider transactions (by companies and 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!
Reckitt Benckiser Group 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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.04% of Reckitt Benckiser Group shares, worth about UK£17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Reckitt Benckiser Group Insiders?
It doesn't really mean much that no insider has traded Reckitt Benckiser Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Reckitt Benckiser Group insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Reckitt Benckiser Group is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
