Stock Analysis

The Independent Non-Executive Director of Bapcor Limited (ASX:BAP), James Scott Todd, Just Bought 100% More Shares

  •  Updated
ASX:BAP
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Even if it's not a huge purchase, we think it was good to see that James Scott Todd, the Independent Non-Executive Director of Bapcor Limited (ASX:BAP) recently shelled out AU$78k to buy stock, at AU$7.82 per share. Even though that isn't a massive buy, it did increase their holding by 100%, which is arguably a good sign.

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The Last 12 Months Of Insider Transactions At Bapcor

In fact, the recent purchase by James Scott Todd was the biggest purchase of Bapcor shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$7.13. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Bapcor insiders were buying shares, but not selling. The average buy price was around AU$6.98. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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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ASX:BAP Insider Trading Volume February 24th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Bapcor Boast High Insider Ownership?

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. Bapcor insiders own about AU$22m worth of shares. That equates to 0.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Bapcor Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Bapcor shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Bapcor has 2 warning signs we think you should be aware of.

Of course Bapcor may not be the best stock to buy. So you may wish to see this free collection of high quality 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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