In the wake of the UK vote to ‘Brexit,’ the domestic UK stock market has encountered a torrid few days to say the least. However, if ever you wanted a gauge on just what the leaders and company directors of the UK’s largest 350 companies think of the recent sell off, you only have to look at the OTAS alerts feed this morning.
Below is a screenshot showing a raft of company insider transactions yesterday. It is worth noting there were only stock buyers and dispersion was across a whole range of sectors. Moreover, our analysis shows that historically these aren’t all just speculative buyers, these guys actually possess a high degree of timing and market nous !
Interestingly, the largest single transaction was in one of the most beaten up sectors, house builders. Residential led property developer Berkeley Group saw its Executive Chairman Anthony Pidgley purchase of just under£1m worth of stock, his first purchase for exactly 8 years ! Take a look at his previous transactions, he called the bottom nicely before….
What this does suggest is that company directors consider the market is overstating the impact of Brexit on big business in the UK and are prepared to back the long-term resilience of their own firms. Proof indeed that they believe they can thrive even outside of the European market……