Yahoo Finance Are Insiders Buying IOOF Holdings Ltd (ASX:IFL) Stock?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in IOOF Holdings Ltd (ASX:IFL).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
Check out our latest analysis for IOOF Holdings
The Last 12 Months Of Insider Transactions At IOOF Holdings
In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Renato Mota bought AU$199k worth of shares at a price of AU$3.69 per share. That means that an insider was happy to buy shares at around the current price of AU$4.03. Of course they may have changed their mind. But this suggests they are optimistic. 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 IOOF Holdings insiders decided to buy shares at close to current prices.
In the last twelve months IOOF Holdings insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
IOOF Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at IOOF Holdings Have Bought Stock Recently
It's good to see that IOOF Holdings insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$219k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership of IOOF Holdings
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. IOOF Holdings insiders own 12% of the company, currently worth about AU$171m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At IOOF Holdings Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about IOOF Holdings. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with IOOF Holdings and understanding them 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
