Yahoo Finance Insider Buying: The Perpetual Limited (ASX:PPT) Independent Director Just Bought 2,403% More Shares
Perpetual Limited (ASX:PPT) shareholders (or potential shareholders) will be happy to see that the Independent Director, Ian Hammond, recently bought a whopping AU$1.2m worth of stock, at a price of AU$4.60. That increased their holding by a full 2,403%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Perpetual
The Last 12 Months Of Insider Transactions At Perpetual
Notably, that recent purchase by Ian Hammond is the biggest insider purchase of Perpetual shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$23.59. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Ian Hammond was also the biggest seller.
Over the last year, we can see that insiders have bought 264.00k shares worth AU$1.3m. But they sold 2.15k shares for AU$51k. In total, Perpetual insiders bought more than they sold over the last year. The average buy price was around AU$4.89. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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 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).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Perpetual insiders have about 0.4% of the stock, worth approximately AU$4.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Do The Perpetual Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Perpetual insiders are reasonably well aligned, and optimistic for the future. 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. For example - Perpetual has 1 warning sign we think you should be aware of.
Of course Perpetual may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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