Place chart

Independent non-executive director of Persimmon Plc (LON:PSN), Joanna Place, has just bought 115% more shares

Investors interested in Khaki Plc (LON:PSN) should certainly note that independent non-executive director Joanna Place recently paid £25.59 a share to buy £100,000 worth of shares. This certainly has us anticipating the best, especially since they have thus increased their own stake to 115%, potentially signaling real optimism.

See our latest analysis for Persimmon

The last 12 months of insider trading at Persimmon

Notably, this recent purchase by Joanna Place is the biggest insider buy of Persimmon stock we’ve seen in the past year. Clearly, then, an insider wanted to buy, roughly at the current price, which is £25.62 in the UK. This means that they have been optimistic about the company in the past, although they may have changed their minds. We always like to see insider buying, but it’s worth noting if those buys were made well below the current stock price, as the discount to value may have diminished as the price rose. In this case, we are happy to report that insider buying was done at prices close to current prices.

While Persimmon insiders have bought shares over the past year, they haven’t sold. The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!

LSE: PSN Insider Trading Volume for January 20, 2022

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Persimmon Insider Property

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Persimmon insiders appear to own 0.6% of the company, worth around £50m. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

What could insider trading at Persimmon tell us?

Good to see the recent insider buying. And longer-term insider trading also gives us confidence. Given that insiders also own a good chunk of Persimmon, we think they’re probably pretty confident of a bright future. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. At Simply Wall St, we found 1 warning sign for khaki that deserve your attention before buying shares.

Sure Khaki may not be the best stock to buy. So you might want to see this free set of high quality 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.

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.