Insider Buying: The GCP Applied Technologies Inc. (NYSE:GCP) Independent Director Just Bought 294% More Shares

Investors who take an interest in GCP Applied Technologies Inc. (NYSE:GCP) should definitely note that the Independent Director, Armand Lauzon, recently paid US$24.36 per share to buy US$390k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 294%.

Check out our latest analysis for GCP Applied Technologies

GCP Applied Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director Robert Yanker for US$616k worth of shares, at about US$15.40 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$23.86. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 62.59k shares for US$1.1m. But insiders sold 1.00k shares worth US$17k. In the last twelve months there was more buying than selling by GCP Applied Technologies insiders. They paid about US$17.94 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and 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!

GCP Applied Technologies 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.

Insider Ownership of GCP Applied Technologies

For a common shareholder, it is worth checking how many shares are held by company 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. GCP Applied Technologies insiders own about US$21m worth of shares. That equates to 1.2% 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 GCP Applied Technologies Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in GCP Applied Technologies shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with GCP Applied Technologies and understanding these should be part of your investment process.

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

If you’re looking to trade GCP Applied Technologies, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.