Investors who take an interest in Fevertree Drinks Plc (LON:FEVR) should definitely note that the Independent Non-executive Director, Kevin Havelock, recently paid UK£14.83 per share to buy UK£320k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 45%.
The Last 12 Months Of Insider Transactions At Fevertree Drinks
Notably, that recent purchase by Kevin Havelock is the biggest insider purchase of Fevertree Drinks shares that we've seen in the last year. That implies that an insider found the current price of UK£15.33 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Fevertree Drinks share holders is that insiders were buying at near the current price.
While Fevertree Drinks insiders bought shares last year, they didn't sell. They paid about UK£17.70 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by 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!
Fevertree Drinks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Fevertree Drinks
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Fevertree Drinks insiders own about UK£219m worth of shares (which is 12% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Fevertree Drinks Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Fevertree Drinks insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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.
Of course Fevertree Drinks 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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