Richard Frost Is The Independent Director of Beacon Roofing Supply, Inc. (NASDAQ:BECN) And They Just Spent US$100k On Shares
Even if it's not a huge purchase, we think it was good to see that Richard Frost, the Independent Director of Beacon Roofing Supply, Inc. (NASDAQ:BECN) recently shelled out US$100k to buy stock, at US$29.92 per share. That might not be a big purchase but it only increased their holding by 8.9%, and could be interpreted as a good sign.
Check out our latest analysis for Beacon Roofing Supply
The Last 12 Months Of Insider Transactions At Beacon Roofing Supply
In fact, the recent purchase by Independent Director Richard Frost was not their only acquisition of Beacon Roofing Supply shares this year. Earlier in the year, they paid US$34.17 per share in a US$402k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Richard Frost was the only individual insider to buy shares in the last twelve months.
Richard Frost bought a total of 18.08k shares over the year at an average price of US$32.70. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Beacon Roofing Supply
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of Beacon Roofing Supply shares, worth about US$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Beacon Roofing Supply Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Beacon Roofing Supply shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Beacon Roofing Supply 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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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