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Bigblu Broadband plc (LON:BBB) drops to UK£45m and insiders who purchased earlier this year lose another UK£22k

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The recent 14% drop in Bigblu Broadband plc's (LON:BBB) stock could come as a blow to insiders who purchased UK£84k worth of stock at an average buy price of UK£1.05 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£62k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Bigblu Broadband

Bigblu Broadband Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Andrew Walwyn bought UK£55k worth of shares at a price of UK£1.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.78). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Bigblu Broadband insiders bought shares during the last year, they didn't sell. Their average price was about UK£1.05. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

Bigblu Broadband is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Bigblu Broadband Insiders Bought Stock Recently

It's good to see that Bigblu Broadband insiders have made notable investments in the company's shares. In total, insiders bought UK£74k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership of Bigblu Broadband

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. We usually like to see fairly high levels of insider ownership. It appears that Bigblu Broadband insiders own 17% of the company, worth about UK£7.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Bigblu Broadband Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Bigblu Broadband we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bigblu Broadband. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Bigblu Broadband.

Of course Bigblu Broadband may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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