Bloomin' Brands, Inc. (NASDAQ:BLMN) shareholders (or potential shareholders) will be happy to see that insider John Gainor recently bought a whopping US$647k worth of stock, at a price of US$14.38. That purchase boosted their holding by 375%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Bloomin' Brands Insider Transactions Over The Last Year
In fact, the recent purchase by John Gainor was the biggest purchase of Bloomin' Brands shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$10.79 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. John Gainor was the only individual insider to buy shares in the last twelve months. We note that John Gainor was also the biggest seller.
John Gainor purchased 50.00k shares over the year. The average price per share was US$15.13. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Bloomin' Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.4% of Bloomin' Brands shares, worth about US$78m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Bloomin' Brands Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Bloomin' Brands insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Bloomin' Brands.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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