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Trade Alert: The Independent Chairman Of Whitbread PLC (LON:WTB), Adam Crozier, Has Just Spent UK£100k Buying 67% More Shares

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Simply Wall St
·3 min read
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Investors who take an interest in Whitbread PLC (LON:WTB) should definitely note that the Independent Chairman, Adam Crozier, recently paid UK£33.46 per share to buy UK£100k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 67%.

Check out our latest analysis for Whitbread

The Last 12 Months Of Insider Transactions At Whitbread

Notably, that recent purchase by Adam Crozier is the biggest insider purchase of Whitbread shares that we've seen in the last year. That implies that an insider found the current price of UK£33.66 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Whitbread insiders decided to buy shares at close to current prices.

Whitbread insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

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).

Does Whitbread Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of Whitbread shares, worth about UK£8.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Whitbread Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Whitbread insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Whitbread and understanding it should be part of your investment process.

Of course Whitbread 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.

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 editorial-team (at) simplywallst.com.