When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in The GPT Group's (ASX:GPT) instance, it's good news for 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.
Check out our latest analysis for GPT Group
GPT Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, MD & Director Robert Johnston for AU$500k worth of shares, at about AU$5.30 per share. That means that an insider was happy to buy shares at above the current price of AU$4.41. 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. 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 GPT Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
GPT Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does GPT Group 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. We usually like to see fairly high levels of insider ownership. GPT Group insiders own about AU$15m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At GPT Group Tell Us?
It doesn't really mean much that no insider has traded GPT Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in GPT Group and we see no evidence to suggest they are worried about 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. To that end, you should learn about the 4 warning signs we've spotted with GPT Group (including 2 which are a bit unpleasant).
But note: GPT Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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