Deputy Chairperson & Lead Independent Director Lawrence Myers Sold A Bunch Of Shares In Breville Group

Some Breville Group Limited (ASX:BRG) shareholders may be a little concerned to see that the Deputy Chairperson & Lead Independent Director, Lawrence Myers, recently sold a substantial AU$3.1m worth of stock at a price of AU$31.15 per share. That diminished their holding by a very significant 61%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Breville Group

Breville Group Insider Transactions Over The Last Year

Notably, that recent sale by Lawrence Myers is the biggest insider sale of Breville Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$33.80. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 61% of Lawrence Myers's holding.

Over the last year we saw more insider selling of Breville Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Breville Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. Breville Group insiders own about AU$41m worth of shares. That equates to 0.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Breville Group Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Breville Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. You'd be interested to know, that we found 1 warning sign for Breville Group and we suggest you have a look.

Of course Breville Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.