Insider Buying: The Plus500 Ltd. (LON:PLUS) Senior Strategy Advisor Just Bought US$3.8m Worth Of Shares

Plus500 Ltd. (LON:PLUS) shareholders (or potential shareholders) will be happy to see that the Senior Strategy Advisor, Alon Gonen, recently bought a whopping UK£3.8m worth of stock, at a price of UK£7.63. While that only increased their holding size by 6.9%, it is still a big swing by our standards.

See 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. That means that an insider was happy to buy shares at around the current price of UK£8.50. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The average buy price was around UK£4.11. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 7.1% of Plus500 shares, worth about UK£66m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Plus500 Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Plus500 we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Plus500, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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