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The CEO & Director of Bunge Limited (NYSE:BG), Gregory Heckman, Just Bought 92% More Shares

Simply Wall St
·3 mins read

Bunge Limited (NYSE:BG) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Gregory Heckman, recently bought a whopping US$4.8m worth of stock, at a price of US$39.85. That purchase boosted their holding by 92%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Bunge

Bunge Insider Transactions Over The Last Year

In fact, the recent purchase by Gregory Heckman was the biggest purchase of Bunge shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$36.15. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.

In the last twelve months insiders purchased 259.68k shares for US$12m. But they sold 1786 shares for US$98k. In total, Bunge insiders bought more than they sold over the last year. Their average price was about US$45.50. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:BG Recent Insider Trading, March 13th 2020
NYSE:BG Recent Insider Trading, March 13th 2020

Bunge is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Bunge Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Bunge insiders own about US$36m worth of shares. That equates to 0.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Bunge Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. 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 Bunge 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 Bunge. For instance, we've identified 3 warning signs for Bunge (1 is a bit concerning) you should be aware of.

But note: Bunge 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.

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.

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. Thank you for reading.