I think it’s a positive sign when insiders buy shares. There have been purchases of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares.
What happened?
Directors have to report to the ASX when they purchase (or sell) shares of the business they’re a director of.
Today we learned that both Rob Millner and Tom Millner have recently bought WHSP shares.
According to the ASX release, Tom Millner bought 40,000 WHSP shares for a cost of $949,729.95 which works out to be an average price of $23.74 per share.
Rob Millner bought 45,000 WHSP shares for a cost of $1,066,988.32, which works out to be an average price of $23.71 per share.
What does this mean?
Well, there is an understanding that management will sell for lots of different reasons, but there’s only one reason they buy on the market – they think it’s good value.
Over the past six months the WHSP share price has risen almost 40% and over the past month it has gone up 17.2%.
I think it’s a good sign that management are willing to buy shares at this level. I’d be willing to buy a parcel too, that’s why I picked it as one of my favourite ASX dividend shares – I wrote about it in this article.
