Who Has Been Selling BBGI Global Infrastructure S.A. (LON:BBGI) Shares?

By
Simply Wall St
Published
February 18, 2021
LSE:BBGI
Source: Shutterstock

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in BBGI Global Infrastructure S.A. (LON:BBGI).

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 would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for BBGI Global Infrastructure

BBGI Global Infrastructure Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CO-CEO & Member of Management Board, Duncan Ball, for UK£407k worth of shares, at about UK£1.63 per share. That means that an insider was selling shares at slightly below the current price (UK£1.71). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 33% of Duncan Ball's holding.

In the last twelve months insiders purchased 111.20k shares for UK£152k. But insiders sold 469.24k shares worth UK£764k. Over the last year we saw more insider selling of BBGI Global Infrastructure shares, than buying. The sellers received a price of around UK£1.63, on average. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. 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:BBGI Insider Trading Volume February 19th 2021

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).

BBGI Global Infrastructure Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at BBGI Global Infrastructure. In total, insiders bought UK£139k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership of BBGI Global Infrastructure

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests BBGI Global Infrastructure insiders own 0.2% of the company, worth about UK£2.5m. We consider this fairly low insider ownership.

What Might The Insider Transactions At BBGI Global Infrastructure Tell Us?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that BBGI Global Infrastructure is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: BBGI Global Infrastructure 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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