Insider Stock Buying Reaches UK£660.0k On Franchise Brands

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Franchise Brands plc's (LON:FRAN) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Franchise Brands Insider Transactions Over The Last Year

The Independent Non-Executive Director Louise George made the biggest insider purchase in the last 12 months. That single transaction was for UK£148k worth of shares at a price of UK£1.48 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.24). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 485.00k shares for UK£660k. On the other hand they divested 81.78k shares, for UK£103k. In total, Franchise Brands insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Franchise Brands

Franchise Brands is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Franchise Brands Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Franchise Brands. In total, insiders bought UK£120k worth of shares in that time. But CFO & Executive Director Andrew Mallows sold UK£103k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Does Franchise Brands Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 23% of Franchise Brands shares, worth about UK£54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Franchise Brands Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Franchise Brands and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Franchise Brands and we suggest you have a look.

Of course Franchise Brands 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.