Bullish Brand Architekts Group plc (LON:BAR) investors are yet to receive a pay off on their UK£578k bet
Insiders who bought UK£578k worth of Brand Architekts Group plc's (LON:BAR) stock at an average buy price of UK£0.69 over the last year may be disappointed by the recent 16% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£243k, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Brand Architekts Group
The Last 12 Months Of Insider Transactions At Brand Architekts Group
Over the last year, we can see that the biggest insider purchase was by Senior Independent Director & Independent Chairman Roger McDowell for UK£353k worth of shares, at about UK£0.78 per share. That means that even when the share price was higher than UK£0.29 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 838.38k shares worth UK£578k. On the other hand they divested 230.00k shares, for UK£166k. In total, Brand Architekts Group insiders bought more than they sold over the last year. The average buy price was around UK£0.69. These transactions suggest that insiders have considered the current price attractive. 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!
Brand Architekts Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 13% of Brand Architekts Group shares, worth about UK£1.1m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Brand Architekts Group Tell Us?
The fact that there have been no Brand Architekts Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Brand Architekts Group insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for Brand Architekts Group (3 are significant) you should be aware of.
Of course Brand Architekts Group 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, but not derivative transactions.
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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.
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