Yahoo Finance Insider Buying: The NEXT plc (LON:NXT) Independent Non-Executive Chairman Just Bought 7.1% More Shares
Potential NEXT plc (LON:NXT) shareholders may wish to note that the Independent Non-Executive Chairman, Michael Roney, recently bought UK£171k worth of stock, paying UK£57.10 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.1%.
Check out our latest analysis for NEXT
NEXT Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Chairman Michael Roney was not their only acquisition of NEXT shares this year. They previously made an even bigger purchase of UK£275k worth of shares at a price of UK£78.50 per share. That means that an insider was happy to buy shares at above the current price of UK£58.78. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Michael Roney was the only individual insider to buy shares in the last twelve months.
Michael Roney purchased 6.50k shares over the year. The average price per share was UK£68.61. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NEXT 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NEXT insiders own 1.2% of the company, currently worth about UK£86m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At NEXT Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in NEXT shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with NEXT and understanding them should be part of your investment process.
But note: NEXT 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.
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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.
