Stock Analysis

Brickworks Limited (ASX:BKW) insiders are undoubtedly delighted they bought last year with gains to date at AU$60k

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Insiders who bought Brickworks Limited (ASX:BKW) in the last 12 months may probably not pay attention to the stock's recent 4.9% drop. After taking the recent loss into consideration, the AU$948k worth of stock they bought is now worth AU$1.0m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Brickworks

Brickworks Insider Transactions Over The Last Year

The MD & Executive Director Lindsay Partridge made the biggest insider purchase in the last 12 months. That single transaction was for AU$715k worth of shares at a price of AU$21.57 each. So it's clear an insider wanted to buy, at around the current price, which is AU$23.10. Of course they may have changed their mind. But this suggests they are optimistic. 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 Brickworks share holders is that insiders were buying at near the current price.

Brickworks insiders may have bought shares in the last year, but they didn't sell any. 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!

ASX:BKW Insider Trading Volume March 14th 2023

Brickworks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Brickworks insiders own 3.7% of the company, worth about AU$130m. 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 Brickworks Tell Us?

The fact that there have been no Brickworks insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Brickworks insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brickworks. At Simply Wall St, we found 2 warning signs for Brickworks that deserve your attention before buying any shares.

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, but not derivative transactions.

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