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Have Broo Limited (ASX:BEE) Insiders Been Selling Their Stock?

Simply Wall St

Anyone interested in Broo Limited (ASX:BEE) should probably be aware that the Executive Chairman, Kent Grogan, recently divested AU$160k worth of shares in the company, at an average price of AU$0.016 each. On the bright side, that sale was only 2.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Broo

The Last 12 Months Of Insider Transactions At Broo

In fact, the recent sale by Kent Grogan was the biggest sale of Broo shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$0.015. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:BEE Recent Insider Trading, November 3rd 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Broo insiders own 67% of the company, worth about AU$6.4m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Broo Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Along with insider transactions, I recommend checking if Broo is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: Broo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.