Trade Alert: The Independent Non-Executive Director Of Polar Capital Holdings plc (LON:POLR), Andrew John Ross, Has Just Spent UK£116k Buying 60% More Shares

By
Simply Wall St
Published
October 15, 2021
AIM:POLR
Source: Shutterstock

Potential Polar Capital Holdings plc (LON:POLR) shareholders may wish to note that the Independent Non-Executive Director, Andrew John Ross, recently bought UK£116k worth of stock, paying UK£7.71 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 60%, potentially signalling some real optimism.

View our latest analysis for Polar Capital Holdings

The Last 12 Months Of Insider Transactions At Polar Capital Holdings

Over the last year, we can see that the biggest insider sale was by the insider, Brian Jonathan Ashford-Russell, for UK£1.2m worth of shares, at about UK£8.02 per share. That means that an insider was selling shares at below the current price (UK£8.09). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 4.4% of Brian Jonathan Ashford-Russell's holding.

Happily, we note that in the last year insiders paid UK£1.1m for 147.30k shares. But they sold 345.60k shares for UK£2.7m. Over the last year we saw more insider selling of Polar Capital Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
AIM:POLR Insider Trading Volume October 16th 2021

I will like Polar Capital Holdings 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 Polar Capital Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Polar Capital Holdings insiders own about UK£112m worth of shares (which is 14% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Polar Capital Holdings Tell Us?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Polar Capital Holdings.

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, but not derivative transactions.

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