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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Babcock International Group PLC (LON:BAB), it sends a favourable message to the company's shareholders.
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.
See our latest analysis for Babcock International Group
Babcock International Group Insider Transactions Over The Last Year
The CEO & Director David Lockwood made the biggest insider purchase in the last 12 months. That single transaction was for UK£119k worth of shares at a price of UK£1.99 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£3.26. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Babcock International Group insiders were buying shares, but not selling. 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!
Babcock International Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Babcock International Group Boast High Insider Ownership?
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. Our data suggests Babcock International Group insiders own 0.2% of the company, worth about UK£2.7m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Babcock International Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Babcock International Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Babcock International Group. For example - Babcock International Group has 1 warning sign we think you should be aware of.