Yahoo Finance Are Insiders Selling Avon Rubber p.l.c. (LON:AVON) Stock?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Avon Rubber p.l.c. (LON:AVON).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Avon Rubber
The Last 12 Months Of Insider Transactions At Avon Rubber
Over the last year, we can see that the biggest insider sale was by Chairman David Evans for UK£118k worth of shares, at about UK£11.75 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of UK£12.80. While their view may have changed since they sold, this isn’t a particularly bullish sign. As a general rule we consider it to be discouraging when insiders are selling below the current price. It is worth noting that this sale was only 25% of David Evans’s holding. David Evans was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 6.42k shares worth UK£91k. But insiders sold 15.00k shares worth UK£188k. David Evans divested 15.00k shares over the last 12 months at an average price of UK£12.52. You can see the insider transactions (by 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!
I will like Avon Rubber better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Avon Rubber 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. Our data suggests Avon Rubber insiders own 0.2% of the company, worth about UK£969k. We consider this fairly low insider ownership.
So What Does This Data Suggest About Avon Rubber Insiders?
It doesn’t really mean much that no insider has traded Avon Rubber shares in the last quarter. The insider transactions at Avon Rubber are not inspiring us to buy. And we’re not picking up on high enough insider ownership to give us any comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Avon Rubber.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
