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In the last year, multiple insiders have substantially increased their holdings of 3i Group plc (LON:III) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
We check all companies for important risks. See what we found for 3i Group in our free report.
3i Group Insider Transactions Over The Last Year
The CEO & Executive Director Simon Borrows made the biggest insider purchase in the last 12 months. That single transaction was for UK£2.8m worth of shares at a price of UK£29.03 each. Even though the purchase was made at a significantly lower price than the recent price (UK£41.70), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£9.2m for 315.61k shares. But they sold 197.12k shares for UK£5.8m. Overall, 3i Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for 3i Group
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 Of 3i Group
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. 3i Group insiders own 1.8% of the company, currently worth about UK£730m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About 3i Group Insiders?
It doesn't really mean much that no insider has traded 3i Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like 3i Group insiders think the business has merit. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for 3i Group.