Trade Alert: The Independent Non-Executive Director Of boohoo group plc (LON:BOO), Iain McDonald, Has Just Spent UK£326k Buying 16% More Shares

Simply Wall St
·2 min read

Investors who take an interest in boohoo group plc (LON:BOO) should definitely note that the Independent Non-Executive Director, Iain McDonald, recently paid UK£3.26 per share to buy UK£326k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

Check out our latest analysis for boohoo group

The Last 12 Months Of Insider Transactions At boohoo group

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Group Executive Chairman Mahmud Kamani for UK£11m worth of shares, at about UK£2.14 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£3.32. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months boohoo group insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

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 of boohoo group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. boohoo group insiders own about UK£828m worth of shares (which is 20% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The boohoo group Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about boohoo group. One for the watchlist, at least! 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. For example, boohoo group has 2 warning signs (and 1 which is significant) we think you should know about.

Of course boohoo group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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