Yahoo Finance AstraZeneca PLC (LON:AZN) insiders placed bullish bets worth US$2.0m in the last 12 months
In the last year, multiple insiders have substantially increased their holdings of AstraZeneca PLC (LON:AZN) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for AstraZeneca
AstraZeneca Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer of Alexion Marc Dunoyer for UK£1.8m worth of shares, at about UK£84.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£81.91). 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
AstraZeneca insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of AstraZeneca
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AstraZeneca insiders own 0.03% of the company, worth about UK£39m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At AstraZeneca Tell Us?
The fact that there have been no AstraZeneca insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in AstraZeneca and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that AstraZeneca is showing 5 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
But note: AstraZeneca may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
