Yahoo Finance Barnes Group Inc. (NYSE:B) insiders have a reason to boast after seeing a US$265k addition to their US$2.8m investment
Last week, Barnes Group Inc. (NYSE:B) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 4.9% last week, resulting in a US$97m increase in the company's market worth. As a result, the stock they originally bought for US$2.8m is now worth US$3.1m.
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 Barnes Group
Barnes Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Thomas Hook for US$1.3m worth of shares, at about US$38.09 per share. That implies that an insider found the current price of US$40.84 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Barnes Group insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$2.8m for 75.35k shares. On the other hand they divested 5.00k shares, for US$161k. In total, Barnes Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Have Barnes Group Insiders Traded Recently?
Lead Independent Director Mylle Bell Mangum bought just US$1.9k worth of shares in that time. That's not much at all. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
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 4.4% of Barnes Group shares, worth about US$91m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Barnes Group Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Barnes Group insiders are doubting the company, and they do own shares. 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. At Simply Wall St, we found 2 warning signs for Barnes Group that deserve your attention before buying any shares.
Of course Barnes 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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