Over the last year, a good number of insiders have significantly increased their holdings in St. James’s Place plc (LON:STJ). This is encouraging because it indicates that insiders are more optimistic about the company’s prospects.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At St. James’s Place
The Partnership Director & Member of Executive Board Peter Edwards made the biggest insider purchase in the last 12 months. That single transaction was for UK£5.7m worth of shares at a price of UK£12.40 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being UK£12.38). 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 insiders purchased 466.03k shares for UK£5.8m. But insiders sold 157.56k shares worth UK£2.2m. In total, St. James’s Place insiders bought more than they sold over the last year. 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that St. James’s Place insiders own 0.3% of the company, worth about UK£19m. 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 St. James’s Place Tell Us?
The fact that there have been no St. James’s Place insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think St. James’s Place insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted 3 warning signs for St. James’s Place (of which 1 doesn’t sit too well with us!) you should know about.
But note: St. James’s Place 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.
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