Bullish Berkeley Group Holdings Insiders Loaded Up On UK£1.20m Of Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in The Berkeley Group Holdings plc's (LON:BKG) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Berkeley Group Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Robert Charles Perrins for UK£227k worth of shares, at about UK£32.45 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£33.32. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Berkeley Group Holdings insiders decided to buy shares at close to current prices.
In the last twelve months Berkeley Group Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Berkeley Group Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Berkeley Group Holdings Insiders Bought Stock Recently
It's good to see that Berkeley Group Holdings insiders have made notable investments in the company's shares. Overall, two insiders shelled out UK£179k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Berkeley Group Holdings insiders own about UK£53m worth of shares. That equates to 1.7% 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 Berkeley Group Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Berkeley Group Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Berkeley Group Holdings. Case in point: We've spotted 1 warning sign for Berkeley Group Holdings you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.