Bed Bath & Beyond Insider Confidence Rewarded, Stock Hits US$412m Market Cap

Insiders who bought Bed Bath & Beyond, Inc. (NYSE:BBBY) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$52m as a result of the stock's 13% gain over the same period. As a result, the stock they originally bought for US$96.5k is now worth US$126.5k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Bed Bath & Beyond

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & Principal Executive Officer Marcus Lemonis bought US$97k worth of shares at a price of US$5.03 per share. Even though the purchase was made at a significantly lower price than the recent price (US$6.59), 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.

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!

Check out our latest analysis for Bed Bath & Beyond

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.

Insider Ownership Of Bed Bath & Beyond

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Bed Bath & Beyond insiders own about US$8.5m worth of shares (which is 2.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Bed Bath & Beyond Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Bed Bath & Beyond shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Bed Bath & Beyond stock. 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 3 warning signs for Bed Bath & Beyond you should be aware of, and 1 of them can't be ignored.

Of course Bed Bath & Beyond 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.