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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Savills plc (LON:SVS).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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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Savills Insider Transactions Over The Last Year
Jeremy Helsby made the biggest insider sale in the last 12 months. That single transaction was for UK£778k worth of shares at a price of UK£9.73 each. That is hardly a positive sign, even though it took place above the latest price (UK£7.73). So it may not shed much light on insider confidence at current levels. Jeremy Helsby was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid UK£50k for 6.48k shares. But they sold 110.00k for UK£1.1m. Jeremy Helsby ditched 110.00k shares over the year. The average price per share was UK£9.61. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Savills Boast High Insider Ownership?
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Savills insiders own about UK£11m worth of shares. That equates to 1.1% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.