Trade Alert: The Group CFO Of HSBC Holdings plc (LON:HSBA), Ewen Stevenson, Has Just Spent US$119k Buying 4.0% More Shares
Investors who take an interest in HSBC Holdings plc (LON:HSBA) should definitely note that the Group CFO, Ewen Stevenson, recently paid UK£3.21 per share to buy UK£119k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.0%.
See our latest analysis for HSBC Holdings
HSBC Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Group CFO Ewen Stevenson was not the only time they bought HSBC Holdings shares this year. Earlier in the year, they paid UK£5.62 per share in a UK£3.2m purchase. That means that an insider was happy to buy shares at above the current price of UK£3.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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 insiders purchased 970.87k shares for UK£5.4m. But they sold 94.60k shares for UK£521k. In total, HSBC Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of HSBC Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. HSBC Holdings insiders own about UK£48m worth of shares. That equates to 0.07% of the company. 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 HSBC Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of HSBC Holdings we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in HSBC Holdings, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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