Yahoo Finance Need To Know: Akzo Nobel N.V. (AMS:AKZA) Insiders Have Been Buying Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Akzo Nobel N.V. (AMS:AKZA).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Akzo Nobel
The Last 12 Months Of Insider Transactions At Akzo Nobel
Chairman of the Board of Management & CEO Thierry F. Vanlancker made the biggest insider purchase in the last 12 months. That single transaction was for €250k worth of shares at a price of €77.66 each. That means that an insider was happy to buy shares at around the current price of €90.69. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Akzo Nobel insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Akzo Nobel is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Akzo Nobel
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Akzo Nobel insiders own 0.02% of the company, worth about €3.0m. We consider this fairly low insider ownership.
So What Do The Akzo Nobel Insider Transactions Indicate?
The fact that there have been no Akzo Nobel insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Akzo Nobel insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Akzo Nobel, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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