When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Johnson Matthey Plc's (LON:JMAT) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Johnson Matthey Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Liam Condon bought UK£219k worth of shares at a price of UK£19.95 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£20.72. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Johnson Matthey insiders decided to buy shares at close to current prices.
In the last twelve months Johnson Matthey insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Johnson Matthey is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Johnson Matthey Insiders Bought Stock Recently
It's good to see that Johnson Matthey insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£222k worth of shares. This makes one think the business has some good points.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Johnson Matthey insiders have about 0.05% of the stock, worth approximately UK£2.0m. I generally like to see higher levels of ownership.
So What Do The Johnson Matthey Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Johnson Matthey insiders are expecting a bright future. 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. Every company has risks, and we've spotted 1 warning sign for Johnson Matthey you should know about.
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.
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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.
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