Stock Analysis

Insiders At Fevertree Drinks See Good Returns After Buying Stock Worth UK£2.3m

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Insiders who bought Fevertree Drinks PLC (LON:FEVR) in the last 12 months may probably not pay attention to the stock's recent 5.5% drop. Even after accounting for the recent loss, the UK£2.3m worth of stock purchased by them is now worth UK£2.7m or in other words, their investment continues to give good returns.

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.

See our latest analysis for Fevertree Drinks

The Last 12 Months Of Insider Transactions At Fevertree Drinks

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Timothy Daniel Warrillow bought UK£1.0m worth of shares at a price of UK£8.71 per share. We do like to see buying, but this purchase was made at well below the current price of UK£10.19. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Fevertree Drinks insiders may have bought shares in the last year, but they didn't sell any. 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!

AIM:FEVR Insider Trading Volume January 27th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fevertree Drinks insiders own about UK£123m worth of shares (which is 10% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Fevertree Drinks Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Fevertree Drinks shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Fevertree Drinks insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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