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Potential B&G Foods, Inc. (NYSE:BGS) shareholders may wish to note that the Independent Chairman of the Board, Stephen Sherrill, recently bought US$464k worth of stock, paying US$6.63 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 25%.
See our latest analysis for B&G Foods
B&G Foods Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Chairman of the Board Stephen Sherrill was not their only acquisition of B&G Foods shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$8.59 per share. That means that an insider was happy to buy shares at above the current price of US$6.75. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 219.57k shares for US$1.7m. But they sold 8.00k shares for US$67k. In the last twelve months there was more buying than selling by B&G Foods insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
B&G Foods is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does B&G Foods 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. We usually like to see fairly high levels of insider ownership. B&G Foods insiders own about US$16m worth of shares. That equates to 3.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About B&G Foods Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in B&G Foods shares, given these transactions (along with notable insider ownership of 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. Our analysis shows 2 warning signs for B&G Foods (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.