Trade Alert: The Deputy Chairman Of Brickworks Limited (ASX:BKW), Michael Millner, Has Just Spent AU$233k Buying 4.1% More Shares

By
Simply Wall St
Published
May 07, 2022
ASX:BKW
Source: Shutterstock

Investors who take an interest in Brickworks Limited (ASX:BKW) should definitely note that the Deputy Chairman, Michael Millner, recently paid AU$23.31 per share to buy AU$233k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.1%.

Check out our latest analysis for Brickworks

The Last 12 Months Of Insider Transactions At Brickworks

In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Lindsay Partridge, sold AU$592k worth of shares at a price of AU$23.66 per share. So what is clear is that an insider saw fit to sell at around the current price of AU$22.71. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Lindsay Partridge.

Happily, we note that in the last year insiders paid AU$310k for 12.95k shares. On the other hand they divested 40.99k shares, for AU$1.0m. Lindsay Partridge divested 40.99k shares over the last 12 months at an average price of AU$24.46. 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!

insider-trading-volume
ASX:BKW Insider Trading Volume May 7th 2022

I will like Brickworks better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.6% of Brickworks shares, worth about AU$124m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Brickworks Insider Transactions Indicate?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Brickworks insiders are fairly aligned, and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Brickworks is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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, but not derivative transactions.

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