Investors who take an interest in Howden Joinery Group Plc (LON:HWDN) should definitely note that the CEO & Director, Andrew Livingston, recently paid UK£5.01 per share to buy UK£181k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 25%.
The Last 12 Months Of Insider Transactions At Howden Joinery Group
In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer of Howden Joinery Trade Division, Andy Witts, sold UK£2.0m worth of shares at a price of UK£5.83 per share. So we know that an insider sold shares at around the present share price of UK£5.02. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Happily, we note that in the last year insiders paid UK£441k for 87.97k shares. But insiders sold 545549 shares worth UK£3.2m. All up, insiders sold more shares in Howden Joinery Group than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Howden Joinery Group 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Howden Joinery Group shares, worth about UK£5.5m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Howden Joinery Group Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. But we can’t say the same for the transactions over the last 12 months. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. 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. Case in point: We’ve spotted 1 warning sign for Howden Joinery Group you should be aware of.
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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.
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