Yahoo Finance Trade Alert: The Independent Chairman Of Associated British Foods plc (LON:ABF), Michael George McLintock, Has Just Spent UK£155k Buying 60% More Shares
Investors who take an interest in Associated British Foods plc (LON:ABF) should definitely note that the Independent Chairman, Michael George McLintock, recently paid UK£17.18 per share to buy UK£155k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 60%, potentially signalling some real optimism.
Check out our latest analysis for Associated British Foods
Associated British Foods Insider Transactions Over The Last Year
Notably, that recent purchase by Michael George McLintock is the biggest insider purchase of Associated British Foods shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£16.82. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Associated British Foods insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Associated British Foods insiders own 0.6% of the company, currently worth about UK£83m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Associated British Foods Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Associated British Foods we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Associated British Foods that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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. 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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