Fevertree Drinks PLC (LON:FEVR) insiders' UK£1.9m purchase saw a boost of UK£697k after market cap rose UK£173m
Fevertree Drinks PLC (LON:FEVR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a UK£173m rise in the company's market capitalisation. In other words, the original UK£1.9m purchase is now worth UK£2.6m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Fevertree Drinks
The Last 12 Months Of Insider Transactions At Fevertree Drinks
Over the last year, we can see that the biggest insider purchase was by Co-Founder Timothy Daniel Warrillow for UK£1.0m worth of shares, at about UK£8.71 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£12.00), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Fevertree Drinks insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
Fevertree Drinks 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 Fevertree Drinks
Many investors like to check how much of a company is owned by insiders. 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 Fevertree Drinks insiders own 10% of the company, worth about UK£145m. 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 Fevertree Drinks Insiders?
It doesn't really mean much that no insider has traded Fevertree Drinks shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Fevertree Drinks insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fevertree Drinks. Every company has risks, and we've spotted 1 warning sign for Fevertree Drinks you should know about.
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.
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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.
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