Javier Ferrán Just Bought Shares In International Consolidated Airlines Group, S.A. (LON:IAG)

Those following along with International Consolidated Airlines Group, S.A. (LON:IAG) will no doubt be intrigued by the recent purchase of shares by insider Javier Ferrán, who spent a stonking UK£655k on stock at an average price of UK£4.55. That increased their holding by a full 180%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for International Consolidated Airlines Group

The Last 12 Months Of Insider Transactions At International Consolidated Airlines Group

The CEO & Executive Director, William Walsh, made the biggest insider sale in the last 12 months. That single transaction was for UK£3.6m worth of shares at a price of UK£5.09 each. So we know that an insider sold shares at around the present share price of UK£4.32. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. William Walsh was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 228.34k shares for UK£1.0m. On the other hand they divested 1400000 shares, for UK£7.1m. William Walsh ditched 1400000 shares over the year. The average price per share was €5.08. The chart below shows insider transactions (by 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!

LSE:IAG Recent Insider Trading, March 8th 2020
LSE:IAG Recent Insider Trading, March 8th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of International Consolidated Airlines Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of International Consolidated Airlines Group shares, 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 International Consolidated Airlines Group Tell Us?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by International Consolidated Airlines Group insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. 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. For example, International Consolidated Airlines Group has 5 warning signs (and 1 which shouldn’t be ignored) we think you should know about.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.

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