John Rogers Just Bought 57% More Shares In WPP plc (LON:WPP)

WPP plc (LON:WPP) shareholders (or potential shareholders) will be happy to see that insider John Rogers recently bought a whopping UK£398k worth of stock, at a price of UK£9.25. That purchase boosted their holding by 57%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for WPP

WPP Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Mark Read bought UK£482k worth of shares at a price of UK£5.67 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£9.30. 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.

While WPP insiders bought shares during the last year, they didn't sell. Their average price was about UK£6.47. 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 companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

WPP is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of WPP

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of WPP shares, worth about UK£16m. 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 WPP Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in WPP shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for WPP (1 is a bit concerning!) that we believe deserve your full attention.

Of course WPP 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.

If you’re looking to trade WPP, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.