Five Executive directors at GKN plc (GKN, 126p) have bought 386,000 shares between them this week, increasing their shareholdings in the group by 75% to around 896,000 (Source: London Stock Exchange).

Those directors are:

CFO William Seeger, CEO Sir Kevin Smith, CEO of Powder Metallurgy Andrew Smith, CEO of Aerospace Marcus Bryson, and CEO of Automotive Nigel Stein. It’s particularly encouraging to see Stein investing here, in view of the recent profit warnings from the car makers globally.

Stein bought 84,000 shares at 100.5p on October 28th, taking his holding to 209,000 shares.

Andrew Smith and Marcus Bryson were sellers near 330p in August 2007, so buying shares at 109p must feel good. Unfortunately CEO Sir Kevin Smith was not quite so savvy. He paid 360p in March 2007.

So GKN join the merry band of UK Engineering companies exhibiting director buying activity: Weir Group, Bodycote, John Wood, Senior and IMI.

See ’25 Directors buy shares in UK Engineering Companies’ (October 28th followthedirectors.co.uk)

View on GKN: Positive- Five directors buying shares

Signal Strength: STRONG- Five directors buying, investing GBP 400k between them, increasing holding by 75%