The recent decline of 4.3% St. James’s Place plc (LON:STJ) shares could be a blow to insiders who have bought £5.7 million worth of shares at an average purchase price of £12.40 over the past 12 months. Insiders buy in the hope that their investments will increase in value over time. However, due to recent losses, their initial investment is now worth just £5.1m, which isn’t a huge amount.
While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.
The last 12 months of insider trading at St. James’s Place
In the past twelve months, the biggest single insider purchase was when Partnership Director and board member Peter Edwards bought £5.7 million worth of shares at a price of 12 £.40 per share. This means that an insider was happy to buy shares above the current price of UK£11.19. Although their perspective has changed since the purchase, it at least suggests they have confidence in the company’s future. We always take careful note of the price paid by insiders when buying stocks. Generally, we are more positive about a stock when an insider has bought the stock at prices above the current price, as this suggests that they view the stock as good value, even at a higher price. raised. Peter Edwards was the only individual insider to buy in the past year.
The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
St. James’s Place isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
St. James’s Place Insiders Recently Bought Stock
Over the past three months, we have seen significantly more insider buying than insider selling at St. James’s Place. Partnership director and board member Peter Edwards spent £5.7million on shares. But we saw insider sales worth £1.9m. We think insiders can be optimistic about the future as insiders have been net buyers of stocks.
St. James’s Place Insider Property
Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. It appears that insiders at St. James’s Place own 0.3% of the company, worth around £17million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
What could insider trading at St. James’s Place tell us?
It is certainly positive to see the recent insider buying. We also rely on the longer-term picture of insider trading. When combined with notable insider ownership, these factors suggest that St. James’s Place insiders are well aligned and may believe the stock price is too low. In addition to knowing the insider trading going on, it pays to identify the risks that St. James’s Place faces. Every business has risks, and we’ve spotted 3 warning signs for St. James’s Place you should know.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.