Yahoo Finance Have Insiders Been Buying SDL plc (LON:SDL) Shares This Year?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in SDL plc (LON:SDL).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for SDL
The Last 12 Months Of Insider Transactions At SDL
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Adolfo Hernandez bought UK£77k worth of shares at a price of UK£3.86 per share. Even though the purchase was made at a significantly lower price, we still think insider buying is a positive. It may not shed much light on insider confidence at the current share price.
Happily, we note that in the last year insiders bought 31.50k shares for a total of UK£131k. In the last twelve months there was more buying than selling by SDL insiders. Their average price was about UK£4.16. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.1m worth of SDL stock, about 0.4% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At SDL Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think SDL insiders are doubting the company. Of course, the future is what matters most. So if you are interested in SDL, you should check out this free report on analyst forecasts for the company.
Of course SDL may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
