Yahoo Finance Georges Bahjat Elhedery Bought 36% More Shares In HSBC Holdings
Those following along with HSBC Holdings plc (LON:HSBA) will no doubt be intrigued by the recent purchase of shares by Georges Bahjat Elhedery, Group CFO of the company, who spent a stonking UK£4.0m on stock at an average price of UK£5.97. Not only is that a big swing, but it increased their holding size by 36%, which is definitely great to see.
View our latest analysis for HSBC Holdings
HSBC Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Georges Bahjat Elhedery is the biggest insider purchase of HSBC Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£6.13. Of course they may have changed their mind. But this suggests they are optimistic. 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 HSBC Holdings insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid UK£4.3m for 723.26k shares. But insiders sold 192.95k shares worth UK£1.1m. In total, HSBC Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
HSBC Holdings 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 Of HSBC Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that HSBC Holdings insiders own 0.05% of the company, worth about UK£62m. 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 Do The HSBC Holdings Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest HSBC Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HSBC Holdings. Our analysis shows 2 warning signs for HSBC Holdings (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.