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How Much Are Ritchie Bros. Auctioneers Incorporated (NYSE:RBA) Insiders Spending On Buying Shares?

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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Ritchie Bros. Auctioneers Incorporated (NYSE:RBA), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

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Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

See our latest analysis for Ritchie Bros. Auctioneers

The Last 12 Months Of Insider Transactions At Ritchie Bros. Auctioneers

CEO & Non-Independent Director Ravichandra Saligram made the biggest insider purchase in the last 12 months. That single transaction was for US$581k worth of shares at a price of US$33.90 each. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.

In the last twelve months insiders purchased 17.18k shares for US$583k. But insiders sold 11.66k shares worth US$393k. In the last twelve months there was more buying than selling by Ritchie Bros. Auctioneers insiders. They paid about US$33.90 on average. Although they bought at below the recent price of US$36.71 per share, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:RBA Insider Trading February 7th 19
NYSE:RBA Insider Trading February 7th 19

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.

Are Ritchie Bros. Auctioneers Insiders Buying Or Selling?

There was only a small bit of insider buying, worth US$2.1k, in the last three months. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Ritchie Bros. Auctioneers shares, worth about US$7.5m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.

What Might The Insider Transactions At Ritchie Bros. Auctioneers Tell Us?

Our data shows a little more insider buying than selling in the last three months. But the net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Ritchie Bros. Auctioneers insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ritchie Bros. Auctioneers.

Of course Ritchie Bros. Auctioneers may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.