Whilst it may not be a huge deal, we thought it was good to see that the Beacon Roofing Supply, Inc. (NASDAQ:BECN) Independent Director, Richard Frost, recently bought US$90k worth of stock, for US$30.05 per share. That might not be a big purchase but it only increased their holding by 8.8%, and could be interpreted as a good sign.
Beacon Roofing Supply Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Richard Frost was not the only time they bought Beacon Roofing Supply shares this year. They previously made an even bigger purchase of US$402k worth of shares at a price of US$34.17 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$28.69). 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. 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. The only individual insider to buy over the last year was Richard Frost.
Richard Frost purchased 14754 shares over the year. The average price per share was US$33.33. You can see a visual depiction of insider transactions (by 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!
Beacon Roofing Supply 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 Beacon Roofing Supply
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Beacon Roofing Supply insiders own about US$13m worth of shares. That equates to 0.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Beacon Roofing Supply Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Beacon Roofing Supply insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Beacon Roofing Supply.
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.
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