Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Even if it's not a huge purchase, we think it was good to see that Linda Cairnie, the Independent Chairman of Babcock International Group PLC (LON:BAB) recently shelled out UK£57k to buy stock, at UK£2.86 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 40%.
The Last 12 Months Of Insider Transactions At Babcock International Group
In fact, the recent purchase by Independent Chairman Linda Cairnie was not their only acquisition of Babcock International Group shares this year. Earlier in the year, they paid UK£3.19 per share in a UK£63k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.89). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Babcock International Group insiders bought shares during the last year, they didn't sell. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Babcock International Group
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.3% of Babcock International Group shares, worth about UK£4.1m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Babcock International Group Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Babcock International Group stock. 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. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Babcock International Group.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.