CEO & Executive Director Bob van Dijk Just Bought 96% More Shares In Prosus N.V. (AMS:PRX)

Those following along with Prosus N.V. (AMS:PRX) will no doubt be intrigued by the recent purchase of shares by Bob van Dijk, CEO & Executive Director of the company, who spent a stonking €8.9m on stock at an average price of €72.54. That increased their holding by a full 96%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Prosus

The Last 12 Months Of Insider Transactions At Prosus

Notably, that recent purchase by Bob van Dijk is the biggest insider purchase of Prosus shares that we've seen in the last year. That means that even when the share price was higher than €70.95 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Prosus insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Does Prosus Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Prosus insiders own 0.3% of the company, worth about €560m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Prosus Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Prosus. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prosus. For example - Prosus has 3 warning signs we think you should be aware of.

Of course Prosus may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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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.