Bullish insiders bet UK£9.4m on Future plc (LON:FUTR)

By
Simply Wall St
Published
September 07, 2021
LSE:FUTR
Source: Shutterstock

Over the last year, a good number of insiders have significantly increased their holdings in Future plc (LON:FUTR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Future

The Last 12 Months Of Insider Transactions At Future

Over the last year, we can see that the biggest insider purchase was by insider Peter Wood for UK£2.1m worth of shares, at about UK£18.18 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£38.34. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 518.49k shares for UK£9.4m. On the other hand they divested 12.53k shares, for UK£367k. Overall, Future insiders were net buyers during the last year. 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!

insider-trading-volume
LSE:FUTR Insider Trading Volume September 7th 2021

Future is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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. It's great to see that Future insiders own 6.2% of the company, worth about UK£282m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Future Tell Us?

It doesn't really mean much that no insider has traded Future shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Future insiders think the business has merit. 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. At Simply Wall St, we found 3 warning signs for Future that deserve your attention before buying any shares.

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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