Louise George Buys Handful Of Shares In Franchise Brands

Investors who take an interest in Franchise Brands plc (LON:FRAN) should definitely note that the Independent Non-Executive Director, Louise George, recently paid UK£1.48 per share to buy UK£148k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Franchise Brands

The Last 12 Months Of Insider Transactions At Franchise Brands

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Nigel Wray, sold UK£11m worth of shares at a price of UK£1.60 per share. That means that an insider was selling shares at around the current price of UK£1.55. While we don't usually like to see insider selling, it's more concerning if the sales take place 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). Nigel Wray was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 262.50k shares for UK£390k. But insiders sold 7.00m shares worth UK£11m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Franchise Brands better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Franchise Brands insiders own 22% of the company, worth about UK£67m. 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 Do The Franchise Brands Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Franchise Brands insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Franchise Brands. Every company has risks, and we've spotted 1 warning sign for Franchise Brands you should know about.

But note: Franchise Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.