Brickworks Insider Lowered Holding By 40% During Last Year

Insiders were net sellers of Brickworks Limited's (ASX:BKW ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Brickworks

The Last 12 Months Of Insider Transactions At Brickworks

The MD & Executive Director, Lindsay Partridge, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.7m worth of shares at a price of AU$27.13 each. That means that an insider was selling shares at below the current price (AU$27.66). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 40% of Lindsay Partridge's holding. Lindsay Partridge was the only individual insider to sell over the last year. Notably Lindsay Partridge was also the biggest buyer, having purchased AU$1.3m worth of shares.

In the last twelve months insiders purchased 46.06k shares for AU$1.3m. But insiders sold 196.60k shares worth AU$5.4m. Lindsay Partridge ditched 196.60k shares over the year. The average price per share was AU$27.37. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Brickworks

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Brickworks insiders own 3.5% of the company, worth about AU$146m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Brickworks Tell Us?

The fact that there have been no Brickworks insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Brickworks insider transactions don't fill us with confidence. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com