Stock Analysis

Having purchased UK£627k worth of ITV plc (LON:ITV) stock, the recent 4.4% pullback is not what insiders may have expected

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LSE:ITV
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Insiders who bought UK£627k worth of ITV plc's (LON:ITV) stock at an average buy price of UK£0.81 over the last year may be disappointed by the recent 4.4% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth UK£470k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

If you're not interested in researching ITV's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

ITV Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman Peter Bazalgette bought UK£99k worth of shares at a price of UK£0.80 per share. That means that even when the share price was higher than UK£0.61 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.

In the last twelve months ITV insiders were buying shares, but not selling. 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!

insider-trading-volume
LSE:ITV Insider Trading Volume September 26th 2022

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).

Are ITV Insiders Buying Or Selling?

There was only a small bit of insider buying, worth UK£2.6k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does ITV Boast High 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. Our data suggests ITV insiders own 0.2% of the company, worth about UK£4.2m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About ITV Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more ITV stock. 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. Our analysis shows 3 warning signs for ITV (2 are significant!) and we strongly recommend you look at them before investing.

Of course ITV may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Valuation is complex, but we're helping make it simple.

Find out whether ITV is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About LSE:ITV

ITV

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth1
Past Performance3
Financial Health5
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Undervalued with excellent balance sheet.