Those following along with Northern Trust Corporation (NASDAQ:NTRS) will no doubt be intrigued by the recent purchase of shares by Michael O'Grady, Chairman & CEO of the company, who spent a stonking US$1.3m on stock at an average price of US$65.10. While that only increased their holding size by 8.3%, it is still a big swing by our standards.
View our latest analysis for Northern Trust
The Last 12 Months Of Insider Transactions At Northern Trust
Notably, that recent purchase by Michael O'Grady is the biggest insider purchase of Northern Trust shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$63.54). 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.
Over the last year, we can see that insiders have bought 26.82k shares worth US$1.7m. But they sold 605.00 shares for US$53k. In the last twelve months there was more buying than selling by Northern Trust insiders. 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).
Does Northern Trust Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Northern Trust insiders own 1.2% of the company, currently worth about US$158m based on the recent share price. 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 Northern Trust Tell Us?
It is good to see recent purchasing. 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 Northern Trust. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Northern Trust.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.