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Those following along with Bunzl plc (LON:BNZL) will no doubt be intrigued by the recent purchase of shares by Frank Van Zanten, CEO & Executive Director of the company, who spent a stonking UK£1.1m on stock at an average price of UK£23.27. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
Our free stock report includes 3 warning signs investors should be aware of before investing in Bunzl. Read for free now.
Bunzl Insider Transactions Over The Last Year
In fact, the recent purchase by Frank Van Zanten was the biggest purchase of Bunzl shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of UK£22.88. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 71.13k shares for UK£1.7m. But they sold 3.00k shares for UK£92k. In total, Bunzl insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Bunzl
Bunzl is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Bunzl
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Bunzl shares, worth about UK£12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Bunzl Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Bunzl insiders are well aligned, and that they may think the share price is too low. 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. For example - Bunzl has 3 warning signs we think you should be aware of.