Insider Buying: The Beazley plc (LON:BEZ) Independent Chairman Just Bought 20% More Shares

By
Simply Wall St
Published
May 24, 2021
LSE:BEZ
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that David Roberts, the Independent Chairman of Beazley plc (LON:BEZ) recently shelled out UK£50k to buy stock, at UK£2.95 per share. That purchase might not be huge but it did increase their holding by 20%.

View our latest analysis for Beazley

The Last 12 Months Of Insider Transactions At Beazley

Notably, that recent purchase by Independent Chairman David Roberts was not the only time they bought Beazley shares this year. Earlier in the year, they paid UK£3.19 per share in a UK£50k purchase. That means that even when the share price was higher than UK£3.05 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Beazley insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE:BEZ Insider Trading Volume May 25th 2021

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 of Beazley

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. It appears that Beazley insiders own 0.6% of the company, worth about UK£11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Beazley Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Beazley insiders are doubting the company, and they do own shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Beazley.

Of course Beazley 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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