Insider Stock Buying Reaches UK£2.38m On Berkeley Group Holdings

Quite a few insiders have dramatically grown their holdings in The Berkeley Group Holdings plc (LON:BKG) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Berkeley Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO & Executive Director, Richard Stearn, for UK£2.0m worth of shares, at about UK£47.48 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of UK£36.90. So it is hard to draw any strong conclusion from it. Richard Stearn was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 62.97k shares for UK£2.4m. On the other hand they divested 42.00k shares, for UK£2.0m. In the last twelve months there was more buying than selling by Berkeley Group Holdings insiders. 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!

View our latest analysis for Berkeley Group Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Berkeley Group Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Berkeley Group Holdings. Overall, two insiders shelled out UK£871k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Berkeley Group Holdings

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 Berkeley Group Holdings insiders own 1.6% of the company, worth about UK£55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Berkeley Group Holdings Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Berkeley Group Holdings shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Berkeley Group Holdings you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.