Investors who take an interest in Baby Bunting Group Limited (ASX:BBN) should definitely note that the CEO, MD & Director, Matthew Spencer, recently paid AU$2.97 per share to buy AU$297k worth of the stock. Although the purchase only increased their holding by 9%, it is still a solid purchase in our view.
View our latest analysis for Baby Bunting Group
Baby Bunting Group Insider Transactions Over The Last Year
Notably, that recent purchase by Matthew Spencer is the biggest insider purchase of Baby Bunting Group shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$2.98. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for Baby Bunting Group share holders is that insiders were buying at near the current price. We note that Matthew Spencer was also the biggest seller.
In the last twelve months insiders purchased 105k shares for AU$312k. But insiders sold 195k shares worth AU$452k. Matthew Spencer ditched 195k shares over the year. The average price per share was AU$2.32. You can see the insider transactions (by 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!
Does Baby Bunting Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Baby Bunting Group insiders own 3.5% of the company, worth about AU$13m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Baby Bunting Group Insiders?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Baby Bunting Group insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in Baby Bunting Group, you should check out this free report on analyst forecasts for the company.
But note: Baby Bunting Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.