One Incitec Pivot Limited (ASX:IPL) insider upped their stake in the previous year

By
Simply Wall St
Published
February 08, 2022
ASX:IPL
Source: Shutterstock

Insiders were net buyers of Incitec Pivot Limited's (ASX:IPL ) stock during the past year. That is, insiders bought more stock than they sold.

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 Incitec Pivot

The Last 12 Months Of Insider Transactions At Incitec Pivot

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director George Biltz bought AU$260k worth of shares at a price of AU$2.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$3.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

insider-trading-volume
ASX:IPL Insider Trading Volume February 8th 2022

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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Incitec Pivot insiders own 0.08% of the company, worth about AU$5.2m. We prefer to see high levels of insider ownership.

So What Do The Incitec Pivot Insider Transactions Indicate?

The fact that there have been no Incitec Pivot insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Incitec Pivot insiders are doubting the company. 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. Every company has risks, and we've spotted 2 warning signs for Incitec Pivot you should know about.

But note: Incitec Pivot 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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