We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Quabit Inmobiliaria, S.A. (BME:QBT).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Quabit Inmobiliaria
Quabit Inmobiliaria Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board & CEO Félix Abánades López bought €12m worth of shares at a price of €1.79 per share. That means that even when the share price was higher than €0.82 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Félix Abánades López. Notably Félix Abánades López was also the biggest seller.
Félix Abánades López divested 10.8m shares over the last 12 months at an average price of €1.74. You can see the insider transactions (by 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!
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Insiders at Quabit Inmobiliaria Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Quabit Inmobiliaria, over the last three months. We can see that Félix Abánades López paid €2.0m for shares in the company. But Félix Abánades López sold shares worth €142k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.