New analysis of directors’ dealings by GraniteShares reveals many directors of UK listed companies saw the short-term dip in UK equities following the Budget on 30th October as a buying opportunity to purchase their own company’s stock.
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Will Rhind, Founder and CEO at GraniteShares
Between 30th October and 22nd November 2024 there were 420 sale or buy transactions made by directors of UK listed companies, of which six out of seven (86%) – or 363 – were share purchases. As a result, directors acquired a total of 95 million shares in their companies during this period, which compares to the 21.1 million shares they have sold.
The combined value of the purchased shares was £47.4 million, however the market value of the shares offloaded by company directors was £279.3 million. GraniteShares believe many of these sales were of stock held by company directors for some time, as they looked to lock in gains and offload the shares following the rise in capital gains tax.
Will Rhind, Founder and CEO of GraniteShares, said: “Our analysis reveals that directors of UK listed companies have placed a strong focus on buying as opposed to selling shares since the Budget on 30th October.
“The FTSE 100 fell in the aftermath of the tax-raising Budget amid fears that interest rates could take longer to drop than previously expected as a result of higher-for-longer borrowing. With share prices falling, many directors saw it as a good buying opportunity to increase their exposure to their company’s stock, as evidenced by our research.”
Source: ETFWorld.co.uk
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