Insider Buying: Davide Campari-Milano Non-Executive Chairman Bought €3.7m Of Shares

Davide Campari-Milano N.V. (BIT:CPR) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman, Luca Garavoglia, recently bought a whopping €3.7m worth of stock, at a price of €5.60. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.05%.

View our latest analysis for Davide Campari-Milano

The Last 12 Months Of Insider Transactions At Davide Campari-Milano

In fact, the recent purchase by Luca Garavoglia was the biggest purchase of Davide Campari-Milano shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than €5.59 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Luca Garavoglia was also the biggest seller.

In the last twelve months insiders purchased 772.00k shares for €4.6m. On the other hand they divested 75.00k shares, for €788k. Overall, Davide Campari-Milano insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Davide Campari-Milano

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. From our data, it seems that Davide Campari-Milano insiders own 0.1% of the company, worth about €6.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Davide Campari-Milano Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Davide Campari-Milano insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Davide Campari-Milano is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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.