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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Avon Protection plc (LON:AVON), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Avon Protection
Avon Protection Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Bruce Thompson for UK£105k worth of shares, at about UK£20.90 per share. That means that even when the share price was higher than UK£11.37 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Avon Protection insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£15.80. These transactions suggest that insiders have considered the current price attractive. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Avon Protection Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Avon Protection. Overall, two insiders shelled out UK£51k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Avon Protection
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, Avon Protection insiders have about 0.5% of the stock, worth approximately UK£1.6m. I generally like to see higher levels of ownership.
So What Do The Avon Protection Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Avon Protection insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Avon Protection and we suggest you have a look.