We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Air Products and Chemicals, Inc. (NYSE:APD).
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.’
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The Last 12 Months Of Insider Transactions At Air Products and Chemicals
In the last twelve months, the biggest single purchase by an insider was when Chairman Seifollah Ghasemi bought US$3.2m worth of shares at a price of US$160 per share. That means that even when the share price was higher, 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. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid US$3.2m for 20.20k shares purchased. In total, Air Products and Chemicals insiders bought more than they sold over the last year. Their average price was about US$160. This is nice to see since it implies that insiders might see value around current prices (around US$159). 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!
Air Products and Chemicals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Air Products and Chemicals Have Bought Stock Recently
Over the last quarter, Air Products and Chemicals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$3.2m worth of shares. That shows some optimism about the company’s future.
Insider Ownership of Air Products and Chemicals
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Air Products and Chemicals insiders own about US$90m worth of shares. That equates to 0.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Air Products and Chemicals Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Air Products and Chemicals shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Air Products and Chemicals, you should check out this free report on analyst forecasts for the company.
But note: Air Products and Chemicals 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.
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.