Insider Stock Buying Reaches €6.65m On Davide Campari-Milano

Multiple insiders secured a larger position in Davide Campari-Milano N.V. (BIT:CPR) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We've discovered 3 warning signs about Davide Campari-Milano. View them for free.

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

The Non-Executive Chairman Luca Garavoglia made the biggest insider purchase in the last 12 months. That single transaction was for €3.7m worth of shares at a price of €5.60 each. That means that an insider was happy to buy shares at around the current price of €5.63. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Davide Campari-Milano share holders is that insiders were buying at near the current price.

In the last twelve months Davide Campari-Milano 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. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Davide Campari-Milano

Davide Campari-Milano is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Davide Campari-Milano Have Bought Stock Recently

It's good to see that Davide Campari-Milano insiders have made notable investments in the company's shares. Non-Executive Chairman Luca Garavoglia spent €2.1m on stock, and there wasn't any selling. That shows some optimism about the company's future.

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Davide Campari-Milano insiders own about €7.1b worth of shares (which is 105% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Davide Campari-Milano Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Davide Campari-Milano. Nice! 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 - Davide Campari-Milano has 3 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.