Insiders who bought Schroders plc (LON:SDR) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£432m as a result of the stock's 6.1% gain over the same period. Put another way, the original UK£1.7m acquisition is now worth UK£1.7m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Schroders Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Independent Non-Executive Director Leonie Emma Schroder for UK£1.1m worth of shares, at about UK£4.71 per share. That means that an insider was happy to buy shares at around the current price of UK£4.74. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Schroders share holders is that insiders were buying at near the current price.
In the last twelve months Schroders insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Schroders is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Schroders Have Bought Stock Recently
It's good to see that Schroders insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£1.7m for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Schroders
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Schroders insiders own about UK£54m worth of shares. That equates to 0.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Schroders Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Schroders we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Schroders.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
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