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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Burberry Group plc's (LON:BRBY) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Burberry Group
Burberry Group Insider Transactions Over The Last Year
The Chairman Gerard Murphy made the biggest insider purchase in the last 12 months. That single transaction was for UK£145k worth of shares at a price of UK£7.25 each. Even though the purchase was made at a significantly lower price than the recent price (UK£11.77), 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.
In the last twelve months Burberry Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Burberry Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Burberry Group
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Burberry Group insiders have about 0.03% of the stock, worth approximately UK£1.2m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Burberry Group Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Burberry Group stock. 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 - Burberry Group has 2 warning signs we think you should be aware of.
But note: Burberry Group 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.