This Brickworks Insider Reduced Their Stake By 40%

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.

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The Last 12 Months Of Insider Transactions At Brickworks

The insider, 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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$23.42. So it may not tell us anything about how insiders feel about the current share price. Lindsay Partridge was the only individual insider to sell over the last year.

Lindsay Partridge sold a total of 171.60k shares over the year at an average price of AU$27.33. 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!

Check out our latest analysis for Brickworks

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Does Brickworks Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brickworks insiders own about AU$127m worth of shares. That equates to 3.6% of the company. 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 great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Brickworks insiders selling. Of course, the future is what matters most. So if you are interested in Brickworks, you should check out this free report on analyst forecasts for the company .

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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.