Why Should You Track Insider Holding Percentages?

An insider boosting their stock holding by a substantial amount can signify bullishness and become a profitable decision.

For example, consider two insiders making equal investments of $20,000 in their company's stock. A 60% increase in one's holding is considered more bullish than a 10% increase. The following cases illustrate notable increases in insider holdings from the last month.

CrowdStrike Holdings Inc (CRWD:US)

Insiders at CrowdStrike bought company stock back in Dec '22, as per our insider buying report, and another insider followed in Jan '23. CrowdStrike is a cybersecurity company that offers a range of services, including its cloud-based security solution platform, Falcon. In January, we reported on a significant insider investment in CRWD.

Board member Roxanne Austin bought 35,000 shares in two trades for $95.14 and $97.59 price per share. In total, she invested nearly $3,360,000 in CRWD. These two transactions raised her holding by around 53.50%.

Austin is an experienced investment manager, serving as the President and CEO of Austin Investment Advisors and chairing the US Mid-market Investment Advisory Committee of EQT Partners.

This significant investment in CrowdStrike suggests that Austin believes the stock is poised to rise.

Our full insider buying report details the cybersecurity company’s recent quarterly results.

Siemens Energy (ENR:GR)

There was also insider buying at power technology company Siemens Energy, in which the two company insiders boosted their holdings in ENR.

CFO Maria Ferraro bought 30,000 ENR shares for €16.87 on December 19, 2022. Shortly after on January 5, Executive Board member, Tim Holt, purchased 35,000 ENR shares for €17.66.

The two insiders invested a total of approximately €1,135,000 million in the company's stock. Ferraro's holding increased from 1,872 shares to 31,872 shares, while Holt's holding increased from 1,180 shares to 36,180 shares.

CFO Ferraro's holdings went up by 2966% and Board Member Holt's holdings skyrocketed by nearly 1603%. This suggests that the insiders have strong confidence in the value of Siemens Energy's stock and believe it presents a good investment opportunity.

JD Sports Fashion PLC (JD/:LN)

JD Sports Fashion is a leading UK retailer specializing in athletic footwear and athleisure wear, operating in over 20 countries worldwide. Recently, 2iQ data revealed an insider purchase at JD.

On January 11, Chairman Andrew Higginson bought 159,704 shares for £1.51, investing approximately £241,000 and increasing his holding to 458,646 shares.

This trade increased the size of his holding by 53%, signaling that Higginson has strong confidence that the stock will rise.

With his background as Chair of William Morrison Supermarkets and over a decade of senior leadership positions at Tesco, he is well-versed in the retail industry, and his confidence in JD Sports Fashion's stock suggests the potential for growth in the future.

Eni SpA (ENI:IM)

Eni is a leading integrated energy company active in the entire value chain of energy production, from traditional fossil fuel to renewable energy. 2iQ’s analysts recently flagged insider buying at the Italian company. In our full insider transaction report, we analyze Eni’s Q3 2022 results, illustrating a strong upside for energy stock.

On January 16, Director Stefano Speroni purchased 16,000 ENI shares at €14.53, costing around €232,512 and increasing his holding to 34,144 shares.

Speroni’s trade is notable for increasing his holding in ENI by nearly 88.18%, indicating a high confidence level in the stock's potential for growth.

In addition to this, he is equipped with an extensive background in capital markets, private equity operations, and mergers and acquisitions, providing him with a deep understanding of Eni's prospects.

In an unpredictable global economy, any large-scale investment which adds to an insider’s company holding will be highly evaluated. Other holdings increases of recent notes include:

Follow the 2iQ blog for more monthly round-ups.

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