Chairman Gerard Murphy Just Bought 100% More Shares In Burberry Group plc (LON:BRBY)

Simply Wall St
March 16, 2022
Source: Shutterstock

Potential Burberry Group plc (LON:BRBY) shareholders may wish to note that the Chairman, Gerard Murphy, recently bought UK£81k worth of stock, paying UK£16.13 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 100%.

See our latest analysis for Burberry Group

Burberry Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CFO, COO & Director, Julie Brown, for UK£447k worth of shares, at about UK£19.45 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 silver lining is that this sell-down took place above the latest price (UK£15.92). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Julie Brown.

Happily, we note that in the last year insiders paid UK£102k for 6.00k shares. But insiders sold 23.00k shares worth UK£447k. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

LSE:BRBY Insider Trading Volume March 16th 2022

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

Does Burberry Group 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. Our data indicates that Burberry Group insiders own about UK£6.8m worth of shares (which is 0.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Burberry Group Insiders?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Burberry Group you should know about.

Of course Burberry Group 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, but not derivative transactions.

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