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Should You Take Comfort From Insider Transactions At Koninklijke BAM Groep nv (AMS:BAMNB)?

Simply Wall St

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Koninklijke BAM Groep nv (AMS:BAMNB).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Koninklijke BAM Groep

Koninklijke BAM Groep Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Executive Board & CEO R. Van Wingerden bought €105k worth of shares at a price of €3.50 per share. That means that an insider was happy to buy shares at above the current price of €2.39. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. R. Van Wingerden was the only individual insider to buy over the year.

You can see a visual depiction of insider transactions (by 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!

ENXTAM:BAMNB Recent Insider Trading, December 4th 2019

Koninklijke BAM Groep 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Koninklijke BAM Groep insiders own 5.2% of the company, worth about €34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Koninklijke BAM Groep Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Koninklijke BAM Groep shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Koninklijke BAM Groep insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Koninklijke BAM Groep, you should check out this free report on analyst forecasts for the company.

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, 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.