Alon Gonen Is The Senior Strategy Advisor of Plus500 Ltd. (LON:PLUS) And They Just Spent US$8.6m On Shares

Those following along with Plus500 Ltd. (LON:PLUS) will no doubt be intrigued by the recent purchase of shares by Alon Gonen, Senior Strategy Advisor of the company, who spent a stonking UK£8.6m on stock at an average price of UK£7.82. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 29%.

View our latest analysis for Plus500

The Last 12 Months Of Insider Transactions At Plus500

In fact, the recent purchase by Alon Gonen was the biggest purchase of Plus500 shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is UK£8.26. 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. The good news for Plus500 share holders is that insiders were buying at near the current price.

While Plus500 insiders bought shares last year, they didn't sell. Their average price was about UK£5.83. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Plus500 is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Plus500

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. It appears that Plus500 insiders own 3.6% of the company, worth about UK£32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Plus500 Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Plus500 insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Plus500 (1 is concerning) you should be aware of.

But note: Plus500 may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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