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BT Group plc (LON:BT.A) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a UK£1.5b addition to the company’s market value. In other words, the original UK£47.6k purchase is now worth UK£58.3k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 4 warning signs investors should be aware of before investing in BT Group. Read for free now.
The Last 12 Months Of Insider Transactions At BT Group
In the last twelve months, the biggest single purchase by an insider was when insider Tushar Morzaria bought UK£48k worth of shares at a price of UK£1.36 per share. We do like to see buying, but this purchase was made at well below the current price of UK£1.67. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for BT Group
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of BT Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that BT Group insiders own about UK£5.2m worth of shares (which is 0.03% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The BT Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded BT Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think BT Group insiders are doubting the company. While it's good to be aware of 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. At Simply Wall St, we found 4 warning signs for BT Group that deserve your attention before buying any shares.