Insider Buying: The Washington H. Soul Pattinson and Company Limited (ASX:SOL) Non-Executive Independent Director Just Bought 30% More Shares

Investors who take an interest in Washington H. Soul Pattinson and Company Limited (ASX:SOL) should definitely note that the Non-Executive Independent Director, Warwick Negus, recently paid AU$26.82 per share to buy AU$268k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 30%.

View our latest analysis for Washington H. Soul Pattinson

The Last 12 Months Of Insider Transactions At Washington H. Soul Pattinson

In fact, the recent purchase by Warwick Negus was the biggest purchase of Washington H. Soul Pattinson shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$28.21. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Washington H. Soul Pattinson share holders is that insiders were buying at near the current price.

Washington H. Soul Pattinson insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Washington H. Soul Pattinson

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Washington H. Soul Pattinson insiders own about AU$538m worth of shares (which is 5.3% 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.

What Might The Insider Transactions At Washington H. Soul Pattinson Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Washington H. Soul Pattinson. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Washington H. Soul Pattinson. At Simply Wall St, we found 1 warning sign for Washington H. Soul Pattinson that deserve your attention before buying any shares.

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.