This Insider Has Just Sold Shares In Bega Cheese

Anyone interested in Bega Cheese Limited (ASX:BGA) should probably be aware that the Non-Executive Director, Richard Cross, recently divested AU$209k worth of shares in the company, at an average price of AU$4.39 each. The eyebrow raising move amounted to a reduction of 24% in their holding.

View our latest analysis for Bega Cheese

Bega Cheese Insider Transactions Over The Last Year

Notably, that recent sale by Richard Cross is the biggest insider sale of Bega Cheese shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of AU$4.21. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 30.65k shares worth AU$94k. But they sold 47.64k shares for AU$209k. 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!

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Insider Ownership Of Bega Cheese

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Bega Cheese insiders own 14% of the company, worth about AU$184m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Bega Cheese Insider Transactions Indicate?

An insider sold Bega Cheese shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Bega Cheese, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.