In This Article:
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Fevertree Drinks Plc (LON:FEVR).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Fevertree Drinks
Fevertree Drinks Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-executive Director Kevin Havelock bought UK£290k worth of shares at a price of UK£21.99 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£23.16. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Fevertree Drinks share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 23958 shares for a total of UK£569k. Fevertree Drinks insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by 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!
Fevertree Drinks 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.
Insiders at Fevertree Drinks Have Bought Stock Recently
Over the last quarter, Fevertree Drinks insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£333k worth of shares. This is a positive in our book as it implies some confidence.