Potential Croda International Plc (LON:CRDA) shareholders may wish to note that the Group General Counsel & Company Secretary, Thomas Brophy, recently bought UK£99k worth of stock, paying UK£70.99 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.
The Last 12 Months Of Insider Transactions At Croda International
Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Keith Layden, for UK£1.7m worth of shares, at about UK£86.10 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£74.08. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in Croda International than they bought, over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Insiders own 0.3% of Croda International shares, worth about UK£29m. 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 Do The Croda International Insider Transactions Indicate?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Croda International insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Croda International. In terms of investment risks, we've identified 2 warning signs with Croda International and understanding these should be part of your investment process.
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.
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.