Bullish Barnes & Noble Education Insiders Rewarded As Their Investment Rises To US$2.65m

Last week, Barnes & Noble Education, Inc. (NYSE:BNED) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a US$37m increase in the company's market worth, implying a 57% gain on their initial purchase. As a result, the stock they originally bought for US$1.69m is now worth US$2.65m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Barnes & Noble Education

The Last 12 Months Of Insider Transactions At Barnes & Noble Education

The Chairman of the Board William Martin made the biggest insider purchase in the last 12 months. That single transaction was for US$922k worth of shares at a price of US$7.19 each. Even though the purchase was made at a significantly lower price than the recent price (US$11.16), we still think insider buying is a positive. 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.

Barnes & Noble Education insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Barnes & Noble Education Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.2% of Barnes & Noble Education shares, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Barnes & Noble Education Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Barnes & Noble Education and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Barnes & Noble Education. Our analysis shows 3 warning signs for Barnes & Noble Education (2 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: Barnes & Noble Education 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.