Pleasing Signs As A Number Of Insiders Buy B&M European Value Retail Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of B&M European Value Retail S.A. (LON:BME), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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B&M European Value Retail Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chair Tiffany Hall for UK£201k worth of shares, at about UK£2.87 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.32). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While B&M European Value Retail insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for B&M European Value Retail

B&M European Value Retail is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At B&M European Value Retail Have Bought Stock Recently

There was some insider buying at B&M European Value Retail over the last quarter. CFO & Executive Director Mike Schmidt shelled out UK£20k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does B&M European Value Retail Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. B&M European Value Retail insiders own 7.0% of the company, currently worth about UK£162m based on the recent share price. 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 Does This Data Suggest About B&M European Value Retail Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, B&M European Value Retail insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing B&M European Value Retail. Every company has risks, and we've spotted 2 warning signs for B&M European Value Retail you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.