Yahoo Finance Insiders who bought into Vodafone Group Public Limited Company (LON:VOD) earlier this year might wish they'd invested more as stock gained 4.6%
Vodafone Group Public Limited Company (LON:VOD) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 4.6% resulting in a UK£1.4b addition to the company’s market value. In other words, the original €122k purchase is now worth €123k.
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.
Check out our latest analysis for Vodafone Group
The Last 12 Months Of Insider Transactions At Vodafone Group
The Independent Non-Executive Director Clara Hedwig Frances Furse made the biggest insider purchase in the last 12 months. That single transaction was for UK£87k worth of shares at a price of UK£1.16 each. That implies that an insider found the current price of UK£1.17 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Vodafone Group share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 105.00k shares for UK£122k. But insiders sold 30.00k shares worth UK£35k. In total, Vodafone Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Vodafone Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Vodafone 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Vodafone Group insiders own 0.07% of the company, worth about UK£22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Vodafone Group Insider Transactions Indicate?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Vodafone Group insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Vodafone Group has 1 warning sign and it would be unwise to ignore it.
But note: Vodafone 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.
