Non-Executive Director of Franchise Brands Nigel Wray Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Nigel Wray, the Non-Executive Director of Franchise Brands plc (LON:FRAN) recently shelled out UK£47k to buy stock, at UK£1.36 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Franchise Brands

The Last 12 Months Of Insider Transactions At Franchise Brands

Notably, that recent purchase by Non-Executive Director Nigel Wray was not the only time they traded Franchise Brands shares this year. Earlier in the year, they sold shares at a price ofUK£1.60 per share in a -UK£11m transaction. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£1.40. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid UK£242k for 162.50k shares. But they sold 7.00m shares for UK£11m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Of Franchise Brands

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Franchise Brands insiders own about UK£62m worth of shares. That equates to 23% 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 Franchise Brands Tell Us?

The recent insider purchases are heartening. 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. 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.

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.