Who Has Been Buying CaixaBank, S.A. (BME:CABK) Shares?

By
Simply Wall St
Published
December 04, 2019
BME:CABK
Source: Shutterstock

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in CaixaBank, S.A. (BME:CABK).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

See our latest analysis for CaixaBank

The Last 12 Months Of Insider Transactions At CaixaBank

CEO & Executive Director Gonzalo Gortázar Rotaeche made the biggest insider purchase in the last 12 months. That single transaction was for €302k worth of shares at a price of €2.98 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being €2.73). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While CaixaBank insiders bought shares last year, they didn't sell. Their average price was about €2.61. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by 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!

BME:CABK Recent Insider Trading, December 5th 2019
BME:CABK Recent Insider Trading, December 5th 2019

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.

Does CaixaBank Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, CaixaBank insiders have about 0.02% of the stock, worth approximately €4.1m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Do The CaixaBank Insider Transactions Indicate?

It doesn't really mean much that no insider has traded CaixaBank shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think CaixaBank insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for CaixaBank.

But note: CaixaBank 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.

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