Yahoo Finance Who Has Been Buying Babcock International Group PLC (LON:BAB) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Babcock International Group PLC (LON:BAB).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for Babcock International Group
Babcock International Group Insider Transactions Over The Last Year
Non-Executive Chairman Michael Turner made the biggest insider purchase in the last 12 months. That single transaction was for UK£110k worth of shares at a price of UK£7.36 each. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price.
Happily, we note that in the last year insiders bought 53.30k shares for a total of UK£326k. In the last twelve months there was more buying than selling by Babcock International Group insiders. They paid about UK£6.11 on average. These transactions suggest that insiders have considered the current price of UK£5.23 attractive. The chart below shows insider transactions (by individuals) over the last year. 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.
Insiders at Babcock International Group Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Babcock International Group. Roger Hardy shelled out UK£37k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does Babcock International Group Boast High 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. We usually like to see fairly high levels of insider ownership. It appears that Babcock International Group insiders own 0.4% of the company, worth about UK£11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Babcock International Group Tell Us?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Babcock International Group and their transactions don’t cause us concern. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Babcock International Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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