Yahoo Finance Did Robert Walters plc (LON:RWA) Insiders Buy Up More Shares?
We often see insiders buying up shares in companies that perform well over the long term. 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 shareholders might well want to know whether insiders have been buying or selling shares in Robert Walters plc (LON:RWA).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
See our latest analysis for Robert Walters
The Last 12 Months Of Insider Transactions At Robert Walters
The Founder Robert Walters made the biggest insider purchase in the last 12 months. That single transaction was for UK£100k worth of shares at a price of UK£3.89 each. We do like to see buying, but this purchase was made at well below the current price of UK£5.38. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Robert Walters insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders at Robert Walters Have Bought Stock Recently
Over the last quarter, Robert Walters insiders have spent a meaningful amount on shares. Non-Executive Chairman Rohinton Mobed spent UK£55k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does Robert Walters Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Robert Walters insiders own 4.7% of the company, worth about UK£18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Robert Walters Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Robert Walters shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Robert Walters. Every company has risks, and we've spotted 3 warning signs for Robert Walters you should know about.
But note: Robert Walters 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, 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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