The Independent Non-Executive Director of Brambles Limited (ASX:BXB), Nora Scheinkestel, Just Bought 152% More Shares
Even if it's not a huge purchase, we think it was good to see that Nora Scheinkestel, the Independent Non-Executive Director of Brambles Limited (ASX:BXB) recently shelled out AU$119k to buy stock, at AU$10.91 per share. Even though that isn't a massive buy, it did increase their holding by 152%, which is arguably a good sign.
See our latest analysis for Brambles
Brambles Insider Transactions Over The Last Year
Notably, that recent purchase by Nora Scheinkestel is the biggest insider purchase of Brambles shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$10.95. 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. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Brambles insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Brambles 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 Brambles
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$6.2m worth of Brambles stock, about 0.04% of the company. I generally like to see higher levels of ownership.
So What Do The Brambles Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Brambles insiders are expecting a bright future. 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. While conducting our analysis, we found that Brambles has 3 warning signs and it would be unwise to ignore these.
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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