Insiders At BellRing Brands Sold US$960k In Stock, Alluding To Potential Weakness

Many BellRing Brands, Inc. (NYSE:BRBR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

See our latest analysis for BellRing Brands

BellRing Brands Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Robert Vitale, for US$902k worth of shares, at about US$60.15 per share. That means that an insider was selling shares at slightly below the current price (US$76.51). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.2% of Robert Vitale's holding.

In the last year BellRing Brands insiders didn't buy any company stock. 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!

I will like BellRing Brands better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of BellRing Brands

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. BellRing Brands insiders own 1.1% of the company, currently worth about US$108m 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 BellRing Brands Insider Transactions Indicate?

It doesn't really mean much that no insider has traded BellRing Brands shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of BellRing Brands insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BellRing Brands. While conducting our analysis, we found that BellRing Brands has 2 warning signs and it would be unwise to ignore these.

But note: BellRing Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.