Yahoo Finance Insider Buying: The Boral Limited (ASX:BLD) CEO, MD & Director Just Bought 196% More Shares
Investors who take an interest in Boral Limited (ASX:BLD) should definitely note that the CEO, MD & Director, Zlatko Todorcevski, recently paid AU$5.08 per share to buy AU$508k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 196%, potentially signalling some real optimism.
Check out our latest analysis for Boral
Boral Insider Transactions Over The Last Year
In fact, the recent purchase by Zlatko Todorcevski was the biggest purchase of Boral shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$5.12. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Boral insiders decided to buy shares at close to current prices.
In the last twelve months Boral insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Does Boral Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Boral insiders own 0.3% of the company, worth about AU$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Boral Tell Us?
It is good to see recent purchasing. 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. Insiders likely see value in Boral shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Boral (1 is a bit concerning!) and we strongly recommend you look at these before investing.
But note: Boral 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.
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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