Insider Stock Buying Reaches €2.76m On Akzo Nobel

Over the last year, a good number of insiders have significantly increased their holdings in Akzo Nobel N.V. (AMS:AKZA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Akzo Nobel Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Chairman of the Management Board Gregoire Poux-Guillaume bought €1.5m worth of shares at a price of €60.27 per share. So it's clear an insider wanted to buy, at around the current price, which is €60.34. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Akzo Nobel insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 46.37k shares for €2.8m. But insiders sold 11.37k shares worth €682k. In total, Akzo Nobel insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Akzo Nobel

Akzo Nobel is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Akzo Nobel

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. From our data, it seems that Akzo Nobel insiders own 0.04% of the company, worth about €4.3m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Akzo Nobel Insiders?

It doesn't really mean much that no insider has traded Akzo Nobel shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Akzo Nobel stock. 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. To that end, you should learn about the 2 warning signs we've spotted with Akzo Nobel (including 1 which doesn't sit too well with us).

But note: Akzo Nobel 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.