Insider Spends UK£144k Buying More Shares In Polar Capital Holdings

Potential Polar Capital Holdings Plc (LON:POLR) shareholders may wish to note that the CEO & Executive Director, Gavin Rochussen, recently bought UK£144k worth of stock, paying UK£3.91 for each share. Although the purchase only increased their holding by 1.9%, it is still a solid purchase in our view.

Our free stock report includes 2 warning signs investors should be aware of before investing in Polar Capital Holdings. Read for free now.

The Last 12 Months Of Insider Transactions At Polar Capital Holdings

In fact, the recent purchase by Gavin Rochussen was the biggest purchase of Polar Capital Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£4.04 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Polar Capital Holdings share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid UK£451k for 103.31k shares. On the other hand they divested 10.00k shares, for UK£36k. In the last twelve months there was more buying than selling by Polar Capital Holdings insiders. Their average price was about UK£4.36. These transactions suggest that insiders have considered the current price attractive. 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!

Check out our latest analysis for Polar Capital Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Polar Capital Holdings

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. Insiders own 5.4% of Polar Capital Holdings shares, worth about UK£21m. 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 Does This Data Suggest About Polar Capital Holdings Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Polar Capital Holdings we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Polar Capital Holdings has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.