A Bellway p.l.c. (LON:BWY) insider lowered their holding by 12% earlier this year

By
Simply Wall St
Published
May 18, 2022
LSE:BWY
Source: Shutterstock

Looking at Bellway p.l.c.'s (LON:BWY ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Bellway

The Last 12 Months Of Insider Transactions At Bellway

Over the last year, we can see that the biggest insider sale was by the Group CEO & Executive Director, Jason Honeyman, for UK£139k worth of shares, at about UK£31.82 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is UK£23.18. So it is hard to draw any strong conclusion from it. Jason Honeyman was the only individual insider to sell over the last year. Notably Jason Honeyman was also the biggest buyer, having purchased UK£107k worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
LSE:BWY Insider Trading Volume May 18th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. From looking at our data, insiders own UK£3.2m worth of Bellway stock, about 0.1% of the company. We consider this fairly low insider ownership.

So What Do The Bellway Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Bellway are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Bellway.

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, but not derivative transactions.

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