It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in ING Groep N.V. (AMS:INGA).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
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. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
ING Groep Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Chief Risk Officer & Member of the Executive Board Steven J. van Rijswijk sold €68k worth of shares at a price of €13.68 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of €9.91. So it may not shed much light on insider confidence at current levels.
We note that in the last year insiders divested 16.13k shares for a total of €171k. In total, ING Groep insiders sold more than they bought over the last year. The sellers received a price of around €10.60, on average. It’s not particularly great to see insiders were selling shares around current prices (shares recently traded around €9.91). But we don’t put too much weight on the insider selling, since sellers could have personal reasons. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does ING Groep Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. ING Groep insiders own about €5.4m worth of shares (which is 0.01% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At ING Groep Tell Us?
It doesn’t really mean much that no insider has traded ING Groep shares in the last quarter. We don’t take much encouragement from the transactions by ING Groep insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for ING Groep.
Of course ING Groep may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.