Yahoo Finance Pleasing Signs As A Number Of Insiders Buy PZ Cussons Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in PZ Cussons plc's (LON:PZC) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for PZ Cussons
PZ Cussons Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Jonathan Myers bought UK£100k worth of shares at a price of UK£1.64 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months PZ Cussons insiders were buying shares, but not selling. Their average price was about UK£1.40. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.6% of PZ Cussons shares, worth about UK£17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About PZ Cussons Insiders?
It doesn't really mean much that no insider has traded PZ Cussons shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think PZ Cussons insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PZ Cussons. In terms of investment risks, we've identified 1 warning sign with PZ Cussons and understanding it should be part of your investment process.
But note: PZ Cussons 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
