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Insider Buying: The Phoenix Group Holdings plc (LON:PHNX) Independent Non-Executive Director Just Bought 155% More Shares
Those following along with Phoenix Group Holdings plc (LON:PHNX) will no doubt be intrigued by the recent purchase of shares by Nicholas Shott, Independent Non-Executive Director of the company, who spent a stonking UK£647k on stock at an average price of UK£6.02. That purchase boosted their holding by 155%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
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Phoenix Group Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Nicholas Shott is the biggest insider purchase of Phoenix Group Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£5.70). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 159.25k shares worth UK£919k. But they sold 2.37k shares for UK£16k. In the last twelve months there was more buying than selling by Phoenix Group Holdings insiders. You can see the insider transactions (by companies and 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Phoenix Group Holdings insiders have about 0.07% of the stock, worth approximately UK£3.8m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Phoenix Group Holdings Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Phoenix Group Holdings insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Phoenix Group Holdings has 2 warning signs (and 1 which is a bit concerning) we think you should know about.
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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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.
Phoenix Group Holdings
Phoenix Group Holdings plc operates in the long-term savings and retirement business in Europe.
High growth potential established dividend payer.