Breedon Group Insiders Added UK£61.5m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Breedon Group plc (LON:BREE) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Breedon Group
The Last 12 Months Of Insider Transactions At Breedon Group
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Amit Bhatia bought UK£19m worth of shares at a price of UK£3.37 per share. We do like to see buying, but this purchase was made at well below the current price of UK£4.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Breedon Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Breedon Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Breedon Group Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Breedon Group. Not only was there no selling that we can see, but they collectively bought UK£9.0m worth of shares. This makes one think the business has some good points.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Breedon Group insiders own 19% of the company, worth about UK£274m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Breedon Group Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Breedon Group. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Breedon Group and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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