Those following along with Essentra plc (LON:ESNT) will no doubt be intrigued by the recent purchase of shares by Paul Forman, Chief Executive & Executive Director of the company, who spent a stonking UK£10m on stock at an average price of UK£260. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.
Essentra Insider Transactions Over The Last Year
In fact, the recent purchase by Paul Forman was the biggest purchase of Essentra shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£2.58 (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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Essentra insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Essentra is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Essentra
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Essentra insiders own 0.2% of the company, worth about UK£1.4m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Essentra Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Essentra insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 5 warning signs for Essentra (1 can't be ignored!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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