Fevertree Drinks Senior Independent Non-Executive Director Acquires 24% More Stock
Fevertree Drinks PLC (LON:FEVR) shareholders (or potential shareholders) will be happy to see that the Senior Independent Non-Executive Director, Kevin Havelock, recently bought a whopping UK£420k worth of stock, at a price of UK£10.20. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 24%.
Check out our latest analysis for Fevertree Drinks
Fevertree Drinks Insider Transactions Over The Last Year
Notably, that recent purchase by Kevin Havelock is the biggest insider purchase of Fevertree Drinks shares that we've seen in the last year. That means that even when the share price was higher than UK£9.64 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Kevin Havelock.
Kevin Havelock bought a total of 51.44k shares over the year at an average price of UK£10.70. 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!
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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fevertree Drinks insiders own 9.5% of the company, currently worth about UK£107m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Fevertree Drinks Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fevertree Drinks. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Fevertree Drinks.
Of course Fevertree Drinks may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.
