The Non-Executive Chairman of Grafton Group plc (LON:GFTU), Michael Roney, Just Bought 35% More Shares




  • In Business
  • 2022-10-04 05:00:34Z
  • By Simply Wall St.
 

Even if it's not a huge purchase, we think it was good to see that Michael Roney, the Non-Executive Chairman of Grafton Group plc (LON:GFTU) recently shelled out UK£75k to buy stock, at UK£6.25 per share. That purchase might not be huge but it did increase their holding by 35%.

View our latest analysis for Grafton Group

The Last 12 Months Of Insider Transactions At Grafton Group

In fact, the recent purchase by Michael Roney was the biggest purchase of Grafton Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£6.83. 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. 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. The good news for Grafton Group share holders is that insiders were buying at near the current price.

In the last twelve months Grafton Group insiders were buying shares, but not selling. 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

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. We usually like to see fairly high levels of insider ownership. Grafton Group insiders own 10% of the company, currently worth about UK£157m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Grafton Group Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Grafton Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. Our analysis shows 2 warning signs for Grafton Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

But note: Grafton 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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