Yahoo Finance Independent Chairman of the Board David A. Hutchison Just Bought 16% More Shares In 3i Group plc (LON:III)
Investors who take an interest in 3i Group plc (LON:III) should definitely note that the Independent Chairman of the Board, David A. Hutchison, recently paid UK£16.34 per share to buy UK£230k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.
See our latest analysis for 3i Group
3i Group Insider Transactions Over The Last Year
Notably, that recent purchase by David A. Hutchison is the biggest insider purchase of 3i 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£16.46. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the 3i Group insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 42.71k shares for UK£596k. But insiders sold 2.96k shares worth UK£47k. In total, 3i Group insiders bought more than they sold over the last year. They paid about UK£13.95 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and 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!
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.
Insider Ownership Of 3i Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 3i Group insiders own 1.7% of the company, currently worth about UK£274m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The 3i Group Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest 3i Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing 3i Group. Be aware that 3i Group is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...
But note: 3i Group 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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