Yahoo Finance One Washington H. Soul Pattinson and Company Limited (ASX:SOL) insider upped their stake by 30% in the previous year
Insiders were net buyers of Washington H. Soul Pattinson and Company Limited's (ASX:SOL ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Washington H. Soul Pattinson
The Last 12 Months Of Insider Transactions At Washington H. Soul Pattinson
Over the last year, we can see that the biggest insider purchase was by Non-Executive Independent Director Warwick Negus for AU$268k worth of shares, at about AU$26.82 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$25.62). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Warwick Negus was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and 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!
Washington H. Soul Pattinson is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Washington H. Soul Pattinson insiders own 5.3% of the company, worth about AU$491m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Washington H. Soul Pattinson Insiders?
It doesn't really mean much that no insider has traded Washington H. Soul Pattinson shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Washington H. Soul Pattinson insiders feel good about the company's 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. Every company has risks, and we've spotted 1 warning sign for Washington H. Soul Pattinson you should know about.
But note: Washington H. Soul Pattinson may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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