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Those following along with Saga plc (LON:SAGA) will no doubt be intrigued by the recent purchase of shares by Roger De Haan, Non-Executive Chairman of the company, who spent a stonking UK£2.0m on stock at an average price of UK£1.35. While that only increased their holding size by 4.0%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Saga
In fact, the recent purchase by Roger De Haan was the biggest purchase of Saga shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£1.38 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Saga share holders is that an insider was buying at near the current price. Roger De Haan was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Saga
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Saga shares, worth about UK£70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Saga Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Saga we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Saga, you should check out this free report on analyst forecasts for the company .