Bunzl Insiders Placed Bullish Bets Worth UK£2.19m

In the last year, multiple insiders have substantially increased their holdings of Bunzl plc (LON:BNZL) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Bunzl Insider Transactions Over The Last Year

The CEO & Executive Director Frank Van Zanten made the biggest insider purchase in the last 12 months. That single transaction was for UK£1.1m worth of shares at a price of UK£23.42 each. That means that an insider was happy to buy shares at above the current price of UK£22.68. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Bunzl insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for Bunzl

Bunzl is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Bunzl Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Bunzl. In total, insiders bought UK£348k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Bunzl

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Bunzl insiders own about UK£14m worth of shares. That equates to 0.2% 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.

So What Does This Data Suggest About Bunzl Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Bunzl insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bunzl. Every company has risks, and we've spotted 2 warning signs for Bunzl you should know about.

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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.