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Trade Alert: The Group Chief Risk & Compliance Officer and Executive Director Of Prudential plc (LON:PRU), Stuart Turner, Has Just Spent UK£347k Buying Shares

Investors who take an interest in Prudential plc (LON:PRU) should definitely note that the Group Chief Risk & Compliance Officer and Executive Director, Stuart Turner, recently paid UK£13.89 per share to buy UK£347k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 48%.

Check out our latest analysis for Prudential

Prudential Insider Transactions Over The Last Year

Notably, that recent purchase by Stuart Turner is the biggest insider purchase of Prudential shares that we've seen in the last year. That implies that an insider found the current price of UK£14.40 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Prudential share holders is that insiders were buying at near the current price.

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While Prudential insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

LSE:PRU Recent Insider Trading, October 11th 2019
LSE:PRU Recent Insider Trading, October 11th 2019

Prudential 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 Prudential

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 appears that Prudential insiders own 0.1% of the company, worth about UK£47m. 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 Prudential Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Prudential shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Prudential, you should check out this free report on analyst forecasts for the company.

Of course Prudential may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.