Stock Analysis

Independent Non-Executive Director Robert Whitfield Just Bought A Handful Of Shares In GPT Group (ASX:GPT)

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ASX:GPT
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Even if it's not a huge purchase, we think it was good to see that Robert Whitfield, the Independent Non-Executive Director of GPT Group (ASX:GPT) recently shelled out AU$61k to buy stock, at AU$4.05 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for GPT Group

GPT Group Insider Transactions Over The Last Year

The Independent Chairman of the Board Vickki McFadden made the biggest insider purchase in the last 12 months. That single transaction was for AU$143k worth of shares at a price of AU$5.72 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$4.31). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

While GPT Group insiders bought shares during the last year, they didn't sell. The average buy price was around AU$4.71. These transactions suggest that insiders have considered the current price attractive. 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!

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ASX:GPT Insider Trading Volume February 25th 2021

GPT Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does GPT Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of GPT Group shares, worth about AU$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About GPT Group Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that GPT Group insiders are reasonably well aligned, and optimistic for the future. 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. In terms of investment risks, we've identified 1 warning sign with GPT Group and understanding this should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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