Have Insiders Been Buying Briscoe Group Limited (NZSE:BGP) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Briscoe Group Limited (NZSE:BGP).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Briscoe Group

The Last 12 Months Of Insider Transactions At Briscoe Group

In the last twelve months, the biggest single purchase by an insider was when Deputy Chairman & Group MD Rodney Duke bought NZ$917k worth of shares at a price of NZ$3.99 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of NZ$5.34. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Rodney Duke bought a total of 645.66k shares over the year at an average price of NZ$3.44. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Briscoe Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Briscoe Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Briscoe Group insiders own 82% of the company, currently worth about NZ$967m 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 Do The Briscoe Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Briscoe Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Briscoe Group insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Briscoe Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Of course Briscoe Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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