Yahoo Finance Bullish Aston Martin Lagonda Global Holdings Insiders Rewarded As Their Investment Rises To UK£5.4m \
Insiders who bought Aston Martin Lagonda Global Holdings plc (LON:AML) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£355m as a result of the stock's 24% gain over the same period. As a result, their original purchase of UK£2.3m worth of stock is now worth UK£5.4m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Aston Martin Lagonda Global Holdings
Aston Martin Lagonda Global Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Lawrence Stroll bought UK£1.8m worth of shares at a price of UK£1.29 per share. We do like to see buying, but this purchase was made at well below the current price of UK£2.66. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Aston Martin Lagonda Global Holdings insiders bought shares during the last year, they didn't sell. Their average price was about UK£1.11. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Aston Martin Lagonda Global Holdings Insiders Bought Stock Recently
We saw some Aston Martin Lagonda Global Holdings insider buying shares in the last three months. Senior Independent Non-Executive Director Nigel Boardman bought UK£26k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
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's great to see that Aston Martin Lagonda Global Holdings insiders own 15% of the company, worth about UK£281m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Aston Martin Lagonda Global Holdings Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Aston Martin Lagonda Global Holdings insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Aston Martin Lagonda Global Holdings has 3 warning signs (and 1 which can't be ignored) we think you should know about.
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.
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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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