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Quite a few insiders have dramatically grown their holdings in Breedon Group plc (LON:BREE) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Breedon Group
The Last 12 Months Of Insider Transactions At Breedon Group
The Non-Executive Chairman Amit Bhatia made the biggest insider purchase in the last 12 months. That single transaction was for UK£5.8m worth of shares at a price of UK£3.85 each. So it's clear an insider wanted to buy, at around the current price, which is UK£4.11. 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 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Breedon Group insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Breedon Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Breedon Group Insiders Buying Or Selling?
There was only a small bit of insider buying, worth UK£1.2k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Breedon Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Breedon Group insiders own about UK£272m worth of shares (which is 19% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Breedon Group Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Breedon Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. At Simply Wall St, we found 1 warning sign for Breedon Group that deserve your attention before buying any shares.