Independent Chairman Bruce Thompson Just Bought 83% More Shares In Avon Protection plc (LON:AVON)

By
Simply Wall St
Published
September 27, 2021
LSE:AVON
Source: Shutterstock

Investors who take an interest in Avon Protection plc (LON:AVON) should definitely note that the Independent Chairman, Bruce Thompson, recently paid UK£20.90 per share to buy UK£105k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 83%, potentially signalling some real optimism.

See our latest analysis for Avon Protection

The Last 12 Months Of Insider Transactions At Avon Protection

The CFO & Director, Nicholas Keveth, made the biggest insider sale in the last 12 months. That single transaction was for UK£175k worth of shares at a price of UK£35.02 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£21.06). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 11.49k shares for UK£272k. On the other hand they divested 8.15k shares, for UK£285k. In total, Avon Protection insiders sold more than they bought over the last year. The sellers received a price of around US$35.02, on average. We are not joyful about insider selling. But the selling was at much higher prices than the current share price (UK£21.06), so it probably doesn't tell us a lot about the value on offer today. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
LSE:AVON Insider Trading Volume September 27th 2021

I will like Avon Protection better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Avon Protection

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. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.1m worth of Avon Protection stock, about 0.3% of the company. I generally like to see higher levels of ownership.

So What Do The Avon Protection Insider Transactions Indicate?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. 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. For instance, we've identified 4 warning signs for Avon Protection (1 is concerning) you should be aware of.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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