Independent Non-Executive Director Robert Whitfield Just Bought 90% More Shares In Transurban Group (ASX:TCL)

Simply Wall St
December 26, 2021
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Transurban Group (ASX:TCL) Independent Non-Executive Director, Robert Whitfield, recently bought AU$135k worth of stock, for AU$13.46 per share. While that isn't the hugest buy, it actually boosted their shareholding by 90%, which is good to see.

See our latest analysis for Transurban Group

The Last 12 Months Of Insider Transactions At Transurban Group

The Independent Non-Executive Director Craig Drummond made the biggest insider purchase in the last 12 months. That single transaction was for AU$544k worth of shares at a price of AU$13.72 each. So it's clear an insider wanted to buy, at around the current price, which is AU$13.77. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Transurban Group insiders decided to buy shares at close to current prices.

Transurban Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:TCL Insider Trading Volume December 26th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Transurban Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Transurban Group insiders own about AU$22m worth of shares. That equates to 0.05% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Transurban Group Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Transurban Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Transurban Group.

Of course Transurban Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.