Insiders might want to re-evaluate their US$6.5m stock purchase as BRP Group, Inc. (NASDAQ:BRP) drops to US$2.9b
Insiders who acquired US$6.5m worth of BRP Group, Inc.'s (NASDAQ:BRP) stock at an average price of US$27.47 in the past 12 months may be dismayed by the recent 3.2% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$5.9m which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for BRP Group
BRP Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Chairman L. Baldwin bought US$5.0m worth of shares at a price of US$28.87 per share. That means that even when the share price was higher than US$25.14 (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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably L. Baldwin was also the biggest seller.
In the last twelve months insiders purchased 235.68k shares for US$6.5m. But insiders sold 190.46k shares worth US$5.5m. In the last twelve months there was more buying than selling by BRP Group insiders. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
BRP Group Insiders Are Selling The Stock
The last three months saw significant insider selling at BRP Group. Specifically, insiders ditched US$538k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership
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. Insiders own 2.1% of BRP Group shares, worth about US$62m. 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 BRP Group Tell Us?
Insiders haven't bought BRP Group stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that BRP Group is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
Of course BRP Group 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, but not derivative transactions.
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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.
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