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Potential Brickworks Limited (ASX:BKW) shareholders may wish to note that the MD & Executive Director, Lindsay Partridge, recently bought AU$512k worth of stock, paying AU$20.49 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 13%.
The Last 12 Months Of Insider Transactions At Brickworks
In fact, the recent purchase by MD & Executive Director Lindsay Partridge was not their only acquisition of Brickworks shares this year. They previously made an even bigger purchase of AU$526k worth of shares at a price of AU$19.56 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$20.82. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Brickworks share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Lindsay Partridge. We note that Lindsay Partridge was also the biggest seller.
Lindsay Partridge bought 68.81k shares over the last 12 months at an average price of AU$19.80. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Brickworks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Brickworks insiders own 3.8% of the company, worth about AU$114m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Brickworks Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Brickworks. That's what I like to see! 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. Our analysis shows 2 warning signs for Brickworks (1 is concerning!) and we strongly recommend you look at them before investing.
But note: Brickworks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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