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We often see insiders buying up shares in companies that perform well over the long term. 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 we’ll take a look at whether insiders have been buying or selling shares in Samsonite International S.A. (HKG:1910).
What Is Insider Selling?
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.’
See our latest analysis for Samsonite International
The Last 12 Months Of Insider Transactions At Samsonite International
CEO & Executive Director Kyle Gendreau made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.9m worth of shares at a price of HK$23.68 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid HK$7.8m for 336.00k shares purchased. In the last twelve months there was more buying than selling by Samsonite International insiders. The average buy price was around HK$23.35. This is nice to see since it implies that insiders might see value around current prices (around HK$23.00). 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 Samsonite International Have Bought Stock Recently
It’s good to see that Samsonite International insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought US$7.8m worth of shares. This is a positive in our book as it implies some confidence.