Yahoo Finance David Keens Is The Senior Independent Non-Executive Director of Auto Trader Group plc (LON:AUTO) And They Just Spent UK£90k On Shares
Potential Auto Trader Group plc (LON:AUTO) shareholders may wish to note that the Senior Independent Non-Executive Director, David Keens, recently bought UK£90k worth of stock, paying UK£3.61 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 100%.
Check out our latest analysis for Auto Trader Group
The Last 12 Months Of Insider Transactions At Auto Trader Group
Notably, that recent purchase by David Keens is the biggest insider purchase of Auto Trader Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£3.77. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Auto Trader Group insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was David Keens.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Auto Trader Group 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.
Insider Ownership of Auto Trader Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It appears that Auto Trader Group insiders own 2.3% of the company, worth about UK£81m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Auto Trader Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Auto Trader Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Auto Trader Group and understanding these should be part of your investment process.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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