Stock Analysis

Quite a few insiders invested in Vodafone Group Public Limited Company (LON:VOD) last year which is positive news for shareholders

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LSE:VOD
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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Vodafone Group Public Limited Company (LON:VOD), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

However if you'd rather see where the opportunities and risks are within VOD's industry, you can check out our analysis on the XX Wireless Telecom industry.

The Last 12 Months Of Insider Transactions At Vodafone Group

The CFO & Director Margherita Della Valle made the biggest insider purchase in the last 12 months. That single transaction was for UK£129k worth of shares at a price of UK£1.19 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.08). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 138.70k shares worth UK£164k. On the other hand they divested 30.00k shares, for UK£35k. In the last twelve months there was more buying than selling by Vodafone Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Vodafone Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Vodafone Group insiders own about UK£22m worth of shares. That equates to 0.07% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vodafone Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Vodafone Group and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Vodafone Group has 2 warning signs and it would be unwise to ignore these.

But note: Vodafone Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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About LSE:VOD

Vodafone Group

Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally.

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)
Valuation3
Future Growth1
Past Performance3
Financial Health2
Dividends3

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

Fair value with acceptable track record.