Stock Analysis

Burberry Group plc (LON:BRBY) drops to UK£22.49, but insiders may have sold at a lower price of UK£21.50 too quickly

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Burberry Group plc's (LON:BRBY) value has fallen 11% in the last week, but insiders who sold UK£344k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of UK£21.50 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Burberry Group

Burberry Group Insider Transactions Over The Last Year

The CFO, COO & Director, Julie Brown, made the biggest insider sale in the last 12 months. That single transaction was for UK£344k worth of shares at a price of UK£21.50 each. That means that an insider was selling shares at slightly below the current price (UK£22.49). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Julie Brown's stake. The only individual insider seller over the last year was Julie Brown.

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!

LSE:BRBY Insider Trading Volume March 16th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Burberry Group Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Burberry Group. Independent Non-Executive Director Debra Lee shelled out UK£12k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Burberry Group insiders own about UK£6.0m worth of shares (which is 0.07% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Burberry Group Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. The insider transactions at Burberry Group are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Burberry Group. For example - Burberry Group has 1 warning sign we think you should be aware of.

But note: Burberry Group 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, but not derivative transactions.

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