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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Bapcor Limited (ASX:BAP), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Bapcor
The Last 12 Months Of Insider Transactions At Bapcor
The insider Noel Anthony Meehan made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$6.72 each. That means that an insider was happy to buy shares at above the current price of AU$6.00. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Bapcor insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Bapcor insiders own about AU$8.7m worth of shares (which is 0.4% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Bapcor Tell Us?
The fact that there have been no Bapcor insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Bapcor insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bapcor. Case in point: We've spotted 1 warning sign for Bapcor you should be aware of.