Brembo Non-Executive Independent Director Acquires 70% More Stock

Brembo N.V. (BIT:BRE) shareholders (or potential shareholders) will be happy to see that the Non-Executive Independent Director, Giancarlo Dallera, recently bought a whopping €500k worth of stock, at a price of €8.70. That purchase boosted their holding by 70%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Brembo

The Last 12 Months Of Insider Transactions At Brembo

In fact, the recent purchase by Giancarlo Dallera was the biggest purchase of Brembo shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of €9.16. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Brembo share holders is that an insider was buying at near the current price. Giancarlo Dallera was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Brembo is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

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. Our data suggests Brembo insiders own 0.04% of the company, worth about €1.3m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Brembo Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Brembo stock. 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. For example - Brembo has 1 warning sign we think you should be aware of.

But note: Brembo 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 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.