B&G Foods Independent Chairman of the Board Acquires 86% More Stock

B&G Foods, Inc. (NYSE:BGS) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, Stephen Sherrill, recently bought a whopping US$1.1m worth of stock, at a price of US$8.59. That purchase boosted their holding by 86%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for B&G Foods

B&G Foods Insider Transactions Over The Last Year

In fact, the recent purchase by Stephen Sherrill was the biggest purchase of B&G Foods shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$9.59), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 141.96k shares worth US$1.2m. But they sold 13.00k shares for US$175k. Overall, B&G Foods insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does B&G Foods Boast High 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. We usually like to see fairly high levels of insider ownership. B&G Foods insiders own about US$22m worth of shares. That equates to 2.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At B&G Foods Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in B&G Foods shares, given these transactions (along with notable insider ownership of the company). 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, B&G Foods has 4 warning signs (and 1 which is significant) we think you should know about.

Of course B&G Foods 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.