Bullish Bloomin' Brands Insiders Loaded Up On US$1.15m Of Stock

Quite a few insiders have dramatically grown their holdings in Bloomin' Brands, Inc. (NASDAQ:BLMN) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Bloomin' Brands

The CEO & Director Michael Spanos made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$8.63 each. That implies that an insider found the current price of US$9.23 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 130.50k shares for US$1.1m. On the other hand they divested 9.56k shares, for US$79k. In total, Bloomin' Brands insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Bloomin' Brands

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

Does Bloomin' Brands Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bloomin' Brands insiders own 2.1% of the company, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Bloomin' Brands Insider Transactions Indicate?

The fact that there have been no Bloomin' Brands insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Bloomin' Brands insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Bloomin' Brands you should be aware of, and 1 of these doesn't sit too well with us.

Of course Bloomin' Brands 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 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.