Taylor Wimpey plc (LON:TW.) shareholders (or potential shareholders) will be happy to see that the Group Chief Executive & Executive Director, Peter Redfern, recently bought a whopping UK£744k worth of stock, at a price of UK£1.19. Not only is that a big swing, but it increased their holding size by 38%, which is definitely great to see.
See our latest analysis for Taylor Wimpey
Taylor Wimpey Insider Transactions Over The Last Year
In fact, the recent purchase by Group Chief Executive & Executive Director Peter Redfern was not their only trade of Taylor Wimpey shares this year. They previously made a sale of -UK£3.7m worth of shares at a price of UK£1.74 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£1.20). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 973.11k shares worth UK£1.2m. But insiders sold 2.15m shares worth UK£3.7m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Taylor Wimpey better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Taylor Wimpey
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.1% of Taylor Wimpey shares, worth about UK£6.5m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Taylor Wimpey Tell Us?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. We’re not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Taylor Wimpey has 2 warning signs we think you should be aware of.
But note: Taylor Wimpey 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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