Insider Buying: The Tritax Big Box REIT plc (LON:BBOX) Partner & COO of Tritax Management LLP Just Bought 2.8% More Shares

By
Simply Wall St
Published
May 13, 2022
LSE:BBOX
Source: Shutterstock

Potential Tritax Big Box REIT plc (LON:BBOX) shareholders may wish to note that the Partner & COO of Tritax Management LLP, Henry Franklin, recently bought UK£100k worth of stock, paying UK£2.01 for each share. Although the purchase only increased their holding by 2.8%, it is still a solid purchase in our view.

Check out our latest analysis for Tritax Big Box REIT

Tritax Big Box REIT Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO of Tritax Management LLP Colin Godfrey for UK£146k worth of shares, at about UK£2.18 per share. That means that even when the share price was higher than UK£1.98 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

Tritax Big Box REIT insiders may have bought shares in the last year, but they didn't sell any. 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:BBOX Insider Trading Volume May 13th 2022

Tritax Big Box REIT is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Tritax Big Box REIT

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tritax Big Box REIT insiders own about UK£20m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tritax Big Box REIT Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Tritax Big Box REIT shares, given these transactions (along with notable insider ownership of the company). 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. To help with this, we've discovered 5 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Tritax Big Box REIT.

But note: Tritax Big Box REIT 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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