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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in RELX PLC's (LON:REL) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for RELX
The Last 12 Months Of Insider Transactions At RELX
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director June Felix bought UK£44k worth of shares at a price of UK£22.04 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£24.00. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the RELX insiders decided to buy shares at close to current prices.
In the last twelve months RELX insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
RELX Insiders Bought Stock Recently
It's good to see that RELX insiders have made notable investments in the company's shares. We can see that Independent Non-Executive Director June Felix paid UK£44k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does RELX 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. A high insider ownership often makes company leadership more mindful of shareholder interests. RELX insiders own about UK£45m worth of shares. That equates to 0.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About RELX Insiders?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in RELX and we see no evidence to suggest they are worried about the 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of RELX.