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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell BBGI Global Infrastructure S.A. (LON:BBGI), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
BBGI Global Infrastructure Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CFO & Member of Management Board Michael Denny for UK£68k worth of shares, at about UK£1.69 per share. That implies that an insider found the current price of UK£1.75 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for BBGI Global Infrastructure share holders is that insiders were buying at near the current price.
In the last twelve months BBGI Global Infrastructure insiders were buying shares, but not selling. They paid about UK£1.36 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
BBGI Global Infrastructure 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 of BBGI Global Infrastructure
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that BBGI Global Infrastructure insiders own 0.4% of the company, worth about UK£4.5m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About BBGI Global Infrastructure Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think BBGI Global Infrastructure insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BBGI Global Infrastructure. Be aware that BBGI Global Infrastructure is showing 3 warning signs in our investment analysis, and 1 of those is significant...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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. 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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