Potential Boral Limited (ASX:BLD) shareholders may wish to note that the Non-Executive Director, Paul Rayner, recently bought AU$200k worth of stock, paying AU$4.10 for each share. That’s a very decent purchase to our minds and it grew their holding by a solid 39.4%.
Boral Insider Transactions Over The Last Year
Non-Executive Chairman Kathryn Fagg made the biggest insider purchase in the last 12 months. That single transaction was for AU$573k worth of shares at a price of AU$6.99 each. That means that even when the share price was higher than AU$4.25 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Kathryn Fagg was also the biggest seller.
In the last twelve months insiders purchased 177k shares for AU$975k. On the other hand they divested 37000 shares, for AU$258k. Overall, Boral insiders were net buyers last year. They paid about AU$5.51 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by 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!
Insider Ownership of Boral
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Boral shares, worth about AU$9.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Boral Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Boral insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Boral, you should check out this free report on analyst forecasts for the company.
But note: Boral 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.