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Insiders who bought Haleon plc (LON:HLN) last year must be regretting not buying more as market cap hits UK£30b

Haleon plc (LON:HLN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 3.3% resulting in a UK£960m addition to the company’s market value. In other words, the original UK£194k purchase is now worth UK£199k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Haleon

The Last 12 Months Of Insider Transactions At Haleon

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chair David Lewis bought UK£100k worth of shares at a price of UK£3.18 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£3.26. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Haleon insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
insider-trading-volume

Haleon is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Haleon Have Bought Stock Recently

It's good to see that Haleon insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£194k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Haleon

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.02% of Haleon shares, worth about UK£7.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Haleon Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Haleon 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. When we did our research, we found 3 warning signs for Haleon (1 shouldn't be ignored!) that we believe deserve your full attention.

Of course Haleon 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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