Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Primary Health Properties Plc (LON:PHP).
Do Insider Transactions Matter?
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, such insiders must disclose their trading activities, and not trade on inside information.
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.’
Primary Health Properties Insider Transactions Over The Last Year
Independent Non-Executive Director Geraldine Kennell made the biggest insider purchase in the last 12 months. That single transaction was for UK£252k worth of shares at a price of UK£1.08 each. That means that an insider was happy to buy shares at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Over the last year, we can see that insiders have bought 545.85k shares worth UK£590k. In the last twelve months there was more buying than selling by Primary Health Properties insiders. They paid about UK£1.08 on average. Although they bought at below the recent price of UK£1.17 per share, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Are Primary Health Properties Insiders Buying Or Selling?
MD & Director Harry Hyman bought just UK£196 worth of shares in that time. That’s not much at all. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.
Does Primary Health Properties Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of Primary Health Properties shares, worth about UK£26m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Primary Health Properties Insiders?
We note a that there has been a tad more insider buying than selling, recently. But the net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Primary Health Properties and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Primary Health Properties, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.