When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Phoenix Group Holdings plc's (LON:PHNX) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Phoenix Group Holdings
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Nicholas Shott for UK£149k worth of shares, at about UK£5.20 per share. We do like to see buying, but this purchase was made at well below the current price of UK£5.96. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid UK£337k for 61.48k shares. On the other hand they divested 5.32k shares, for UK£36k. In the last twelve months there was more buying than selling by Phoenix Group Holdings insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Phoenix Group Holdings Insiders Bought Stock Recently
Over the last quarter, Phoenix Group Holdings insiders have spent a meaningful amount on shares. In total, insiders bought UK£252k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Phoenix Group Holdings Boast High Insider Ownership?
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. Our data indicates that Phoenix Group Holdings insiders own about UK£5.1m worth of shares (which is 0.09% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Phoenix Group Holdings Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Phoenix Group Holdings insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Phoenix Group Holdings you should be aware of, and 1 of them is concerning.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here