Potential Briscoe Group Limited (NZSE:BGP) shareholders may wish to note that the Deputy Chairman & Group Managing Director, Rodney Duke, recently bought NZ$681k worth of stock, paying NZ$3.15 for each share. Although the purchase only increased their holding by 0.1%, it is still a solid purchase in our view.
Briscoe Group Insider Transactions Over The Last Year
Notably, that recent purchase by Rodney Duke is the biggest insider purchase of Briscoe Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$2.59). 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Rodney Duke was the only individual insider to buy over the year.
Rodney Duke purchased 258.01k shares over the year. The average price per share was NZ$3.17. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Briscoe Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. We usually like to see fairly high levels of insider ownership. It's great to see that Briscoe Group insiders own 82% of the company, worth about NZ$470m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Briscoe Group 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Briscoe Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Briscoe Group (1 makes us a bit uncomfortable) you should be aware of.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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