In the last year, multiple insiders have substantially increased their holdings of RB Global, Inc. (NYSE:RBA) stock, indicating that insiders’ optimism about the company’s prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
RB Global Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Ann Fandozzi bought US$1.0m worth of shares at a price of US$54.06 per share. That implies that an insider found the current price of US$55.04 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 RB Global share holders is that insiders were buying at near the current price.
RB Global insiders may have bought shares in the last year, but they didn’t sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
RB Global Insiders Bought Stock Recently
Over the last quarter, RB Global insiders have spent a meaningful amount on shares. Overall, seven insiders shelled out US$2.6m for shares in the company — and none sold. That shows some optimism about the company’s future.
Does RB Global Boast High 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. We usually like to see fairly high levels of insider ownership. RB Global insiders own about US$18m worth of shares. That equates to 0.2% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At RB Global Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of RB Global we think they are probably pretty confident of a bright future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that RB Global is showing 5 warning signs in our investment analysis, and 3 of those are potentially serious…
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.
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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.
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