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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Mondi plc (LON:MNDI).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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Mondi Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by CEO & Executive Director Peter Oswald for UK£287k worth of shares, at about UK£19.81 per share. So what is clear is that an insider saw fit to sell at around the current price of UK£18.23. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price. Notably Peter Oswald was also the biggest buyer, having purchased UK£80k worth of shares.
All up, insiders sold more shares in Mondi than they bought, over the last year. The sellers received a price of around €19.81, on average. It’s not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Mondi Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Mondi. Specifically, Peter Oswald bought €80k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.