Whilst it may not be a huge deal, we thought it was good to see that the Standard Life Aberdeen plc (LON:SLA) Senior Independent Non-Executive Director, Jonathan Asquith, recently bought UK£56k worth of stock, for UK£2.25 per share. While that isn't the hugest buy, it actually boosted their shareholding by 56%, which is good to see.
Check out our latest analysis for Standard Life Aberdeen
Standard Life Aberdeen Insider Transactions Over The Last Year
The insider Norman Skeoch made the biggest insider purchase in the last 12 months. That single transaction was for UK£99k worth of shares at a price of UK£1.97 each. That implies that an insider found the current price of UK£2.34 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Standard Life Aberdeen insiders decided to buy shares at close to current prices.
Standard Life Aberdeen insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£2.17. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Standard Life Aberdeen insiders own about UK£4.1m worth of shares (which is 0.08% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Standard Life Aberdeen Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Standard Life Aberdeen insiders are expecting a bright future. 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. Every company has risks, and we've spotted 1 warning sign for Standard Life Aberdeen you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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