The Ampol (ASX: ALD) share price is soaring today after its chair more than doubled his personal investment in the company.
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The Ampol Ltd (ASX: ALD) share price is soaring today after its chair more than doubled his personal investment in the company. The transport fuel company’s shares are up 6.02%, trading at $24.30 near the market close today.
Let’s look further into the share purchase which has sent the Ampol share price flying.
The chairman’s investment
In today’s announcement, Ampol advised its chair Steven Gregg purchased another 10,000 shares in the company after the market closed on Friday. The purchase has boosted his holding of Ampol shares to 16,000.
Mr Gregg must have believed the company’s share price on Friday was a good deal. He paid around $23.61 per share, investing more than $236,000 in total.
The on-market trade was announced after the close on Friday, making today the first day investors could follow the chair’s lead.
Many investors believe company insiders who show they have faith in their business by personally investing to be a good sign of a company’s future. This has certainly proven to be the case for Ampol today.
Other Ampol board member’s recent investments
The Ampol chair’s new investment comes nearly a month after the company notified the ASX of 4 Ampol board members’ personal investments in the company’s shares.
On 24 February, 3 board members invested in Ampol shares.
- Mark Chellew purchased 5,500 shares, investing $142,010 ($25.82 per share).
- Micheal Ihlein purchased 7,720 shares, investing $200,649.57 ($25.99 per share).
- Gary Smith purchased 2,150 shares, investing $55,857 ($25.98 per share).
The following day,
- Penelope Winn purchased 1,550 shares, investing $40,021 ($25.82 per share).
Ampol share price snapshot
It’s clear which board member managed to get the best bargain for the company’s shares. At its current price of $24.30, only Mr Greg is receiving a return on his investment so far.
The Ampol share price is up 27.9% over the past 12 months but down 13.95% year to date.
Ampol has a market capitalisation of $5.46 billion, with approximately 238 million shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.