Bullish N Brown Group Insiders Loaded Up On UK£5.07m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in N Brown Group plc (LON:BWNG). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
Check out our latest analysis for N Brown Group
N Brown Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director David Alliance for UK£1.3m worth of shares, at about UK£0.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months N Brown Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
N Brown Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of N Brown Group
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that N Brown Group insiders own 60% of the company, worth about UK£55m. 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 N Brown Group Insiders?
It doesn't really mean much that no insider has traded N Brown Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like N Brown Group insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing N Brown Group. In terms of investment risks, we've identified 2 warning signs with N Brown Group and understanding these should be part of your investment process.
But note: N Brown Group 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 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.
