Stock Analysis

How Much Are BBGI Global Infrastructure S.A. (LON:BBGI) Insiders Taking Off The Table?

LSE:BBGI
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell BBGI Global Infrastructure S.A. (LON:BBGI), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for BBGI Global Infrastructure

The Last 12 Months Of Insider Transactions At BBGI Global Infrastructure

The CO-CEO & Member of Management Board, Duncan Ball, made the biggest insider sale in the last 12 months. That single transaction was for UK£407k worth of shares at a price of UK£1.63 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£1.70. 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. It is worth noting that this sale was only 33% of Duncan Ball's holding.

All up, insiders sold more shares in BBGI Global Infrastructure than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
LSE:BBGI Insider Trading Volume November 20th 2020

I will like BBGI Global Infrastructure better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of BBGI Global Infrastructure

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. Based on our data, BBGI Global Infrastructure insiders have about 0.2% of the stock, worth approximately UK£2.3m. I generally like to see higher levels of ownership.

So What Do The BBGI Global Infrastructure Insider Transactions Indicate?

It doesn't really mean much that no insider has traded BBGI Global Infrastructure shares in the last quarter. The insider transactions at BBGI Global Infrastructure 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. When we did our research, we found 2 warning signs for BBGI Global Infrastructure (1 is significant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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This article by Simply Wall St is general in nature. 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.
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