Recent gains in Aston Martin Lagonda Global Holdings plc (LON:AML) help add back some value on insider purchases worth UK£5.0m, still down UK£1.2m

Simply Wall St
March 18, 2022
Source: Shutterstock

Insiders who bought UK£5.0m worth of Aston Martin Lagonda Global Holdings plc (LON:AML) stock in the last year recovered part of their losses as the stock rose by 13% last week. However, total losses seen by insiders are still UK£1.2m but in since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Aston Martin Lagonda Global Holdings

The Last 12 Months Of Insider Transactions At Aston Martin Lagonda Global Holdings

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Lawrence Stroll bought UK£4.8m worth of shares at a price of UK£12.32 per share. That means that even when the share price was higher than UK£9.19 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Aston Martin Lagonda Global Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

LSE:AML Insider Trading Volume March 18th 2022

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).

Aston Martin Lagonda Global Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Aston Martin Lagonda Global Holdings. Specifically, CEO & Executive Director Tobias Moers bought UK£55k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Aston Martin Lagonda Global Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Aston Martin Lagonda Global Holdings insiders own 19% of the company, worth about UK£206m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Aston Martin Lagonda Global Holdings Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Aston Martin Lagonda Global Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Aston Martin Lagonda Global Holdings you should be aware of.

Of course Aston Martin Lagonda Global Holdings 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.