Stock Analysis

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

  •  Updated
ASX:BAP
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Bapcor Limited (ASX:BAP) Independent Non-Executive Director, James Scott Todd, recently bought AU$70k worth of stock, for AU$6.95 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Bapcor

The Last 12 Months Of Insider Transactions At Bapcor

The MD, CEO & Director, Darryl Abotomey, made the biggest insider sale in the last 12 months. That single transaction was for AU$2.2m worth of shares at a price of AU$7.21 each. So we know that an insider sold shares at around the present share price of AU$6.89. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Darryl Abotomey was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$162k for 26.00k shares. On the other hand they divested 305.79k shares, for AU$2.2m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:BAP Insider Trading Volume September 23rd 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Bapcor

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Bapcor insiders own about AU$18m worth of shares. That equates to 0.8% of the company. 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 Bapcor Tell Us?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Bapcor insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Bapcor you should know about.

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.

If you’re looking to trade Bapcor, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Bapcor is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis