Hopeful week for insiders who might be regretting buying UK£7.1m of Aston Martin Lagonda Global Holdings plc (LON:AML) stock earlier this year
Some of the losses seen by insiders who purchased UK£7.1m worth of Aston Martin Lagonda Global Holdings plc (LON:AML) shares over the past year were recovered after the stock increased by 23% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling UK£3.2m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Aston Martin Lagonda Global Holdings
Aston Martin Lagonda Global Holdings Insider Transactions Over The Last Year
The Executive Chairman Lawrence Stroll made the biggest insider purchase in the last 12 months. That single transaction was for UK£4.8m worth of shares at a price of UK£12.32 each. That means that an insider was happy to buy shares at above the current price of UK£1.62. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Aston Martin Lagonda Global Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about UK£2.93 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Aston Martin Lagonda Global Holdings Insiders Bought Stock Recently
Over the last quarter, Aston Martin Lagonda Global Holdings insiders have spent a meaningful amount on shares. We can see that Executive Chairman Lawrence Stroll paid UK£2.2m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Aston Martin Lagonda Global Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Aston Martin Lagonda Global Holdings insiders own 26% of the company, worth about UK£297m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Aston Martin Lagonda Global Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Aston Martin Lagonda Global Holdings. Looks promising! 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. You'd be interested to know, that we found 2 warning signs for Aston Martin Lagonda Global Holdings and we suggest you have a look.
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.
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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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