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Whilst it may not be a huge deal, we thought it was good to see that Kenneth McCall, who is a company insider, recently bought AU$91k worth of stock, for AU$10.24 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Check out our latest analysis for Brambles
The Last 12 Months Of Insider Transactions At Brambles
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Nora Scheinkestel for AU$119k worth of shares, at about AU$10.92 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$10.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Brambles insiders bought shares during the last year, they didn't sell. 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!
Brambles 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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Brambles insiders have about 0.04% of the stock, worth approximately AU$5.9m. We prefer to see high levels of insider ownership.
So What Do The Brambles Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Brambles insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Brambles and we suggest you have a look.