Yahoo Finance Bullish insiders at Rentokil Initial plc (LON:RTO) loaded up on UK£833k of stock earlier this year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Rentokil Initial plc (LON:RTO), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Rentokil Initial
Rentokil Initial Insider Transactions Over The Last Year
The CEO & Executive Director Andrew Ransom made the biggest insider purchase in the last 12 months. That single transaction was for UK£242k worth of shares at a price of UK£5.38 each. That means that an insider was happy to buy shares at above the current price of UK£4.75. 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.
In the last twelve months Rentokil Initial insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rentokil Initial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Rentokil Initial Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Rentokil Initial shares, worth about UK£9.6m. 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 Rentokil Initial Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Rentokil Initial insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rentokil Initial. At Simply Wall St, we found 1 warning sign for Rentokil Initial that deserve your attention before buying any shares.
But note: Rentokil Initial 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.
