Goodwin Insiders Placed Bullish Bets Worth UK£2.01m

Over the last year, a good number of insiders have significantly increased their holdings in Goodwin PLC (LON:GDWN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Goodwin

Goodwin Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Richard Goodwin bought UK£633k worth of shares at a price of UK£46.15 per share. That means that an insider was happy to buy shares at around the current price of UK£48.40. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 43.21k shares worth UK£2.0m. But they sold 14.24k shares for UK£744k. In the last twelve months there was more buying than selling by Goodwin insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Goodwin is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Goodwin Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of Goodwin shares, worth about UK£38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Goodwin Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Goodwin shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Goodwin insiders are doubting the company, and they do own shares. Along with insider transactions, I recommend checking if Goodwin is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course Goodwin 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 of direct interests only, but not derivative transactions or indirect interests.

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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.