We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Eddie Stobart Logistics plc (LON:ESL).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Eddie Stobart Logistics
The Last 12 Months Of Insider Transactions At Eddie Stobart Logistics
Over the last year, we can see that the biggest insider sale was by the , David Meir, for UK£61k worth of shares, at about UK£1.21 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of UK£1.00. So it may not tell us anything about how insiders feel about the current share price. David Meir was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 45000 shares for UK£44k. But they sold 50000 for UK£61k. The chart below shows insider transactions (by 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 freelist of companies. (Hint: insiders have been buying them).
Eddie Stobart Logistics Insiders Bought Stock Recently
Over the last quarter, Eddie Stobart Logistics insiders have spent a meaningful amount on shares. In total, insiders bought UK£44k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of Eddie Stobart Logistics
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Eddie Stobart Logistics insiders have about 0.5% of the stock, worth approximately UK£1.7m. We consider this fairly low insider ownership.
So What Do The Eddie Stobart Logistics Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. Our analysis of Eddie Stobart Logistics insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for Eddie Stobart Logistics.
Of course Eddie Stobart Logistics may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.
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