Have Insiders Been Buying Brewin Dolphin Holdings PLC (LON:BRW) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Brewin Dolphin Holdings PLC (LON:BRW).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
See our latest analysis for Brewin Dolphin Holdings
Brewin Dolphin Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Robin Beer is the biggest insider purchase of Brewin Dolphin Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£2.70. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Brewin Dolphin Holdings insiders decided to buy shares at close to current prices.
Brewin Dolphin Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£2.38. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Brewin Dolphin Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Brewin Dolphin Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Brewin Dolphin Holdings. Specifically, CEO & Director Robin Beer bought UK£101k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Brewin Dolphin Holdings insiders own about UK£720k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Brewin Dolphin Holdings Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Brewin Dolphin Holdings insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Brewin Dolphin Holdings, you should check out this free report on analyst forecasts for the company.
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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