Should You Take Comfort From Insider Transactions At Glenveagh Properties PLC (ISE:GVR)?

We often see insiders buying up shares in companies that perform well over the long term. 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 we’ll take a look at whether insiders have been buying or selling shares in Glenveagh Properties PLC (ISE:GVR).

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, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

See our latest analysis for Glenveagh Properties

The Last 12 Months Of Insider Transactions At Glenveagh Properties

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Richard Cherry for €192k worth of shares, at about €1.15 per share. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.

In the last twelve months insiders paid €564k for 500.19k shares purchased. Overall, Glenveagh Properties insiders were net buyers last year. They paid about €1.13 on average. This is nice to see since it implies that insiders might see value around current prices (around €0.88). The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ISE:GVR Recent Insider Trading, April 5th 2019
ISE:GVR Recent Insider Trading, April 5th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Glenveagh Properties insiders own 2.0% of the company, worth about €16m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Glenveagh Properties Tell Us?

It doesn’t really mean much that no insider has traded Glenveagh Properties shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Glenveagh Properties insiders are doubting the company, and they do own shares. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Glenveagh Properties.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.