Rico Back Is The Group CEO & Director of Royal Mail plc (LON:RMG) And They Just Spent UK£702k On Shares

Royal Mail plc (LON:RMG) shareholders (or potential shareholders) will be happy to see that the Group CEO & Director, Rico Back, recently bought a whopping UK£702k worth of stock, at a price of UK£2.34. Not only is that a big swing, but it increased their holding size by 27%, which is definitely great to see.

View our latest analysis for Royal Mail

Royal Mail Insider Transactions Over The Last Year

Notably, that recent purchase by Rico Back is the biggest insider purchase of Royal Mail shares that we’ve seen in the last year. That implies that an insider found the current price of UK£2.35 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider bought shares at close to current prices. Rico Back was the only individual insider to buy shares in the last twelve months.

Rico Back purchased 750.00k shares over the year. The average price per share was UK£2.15. You can see the insider transactions (by individuals) over the last year depicted in the chart 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).

Does Royal Mail Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Royal Mail insiders have about 0.1% of the stock, worth approximately UK£2.9m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Royal Mail Insiders?

It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Royal Mail insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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