Yahoo Finance As Greggs plc (LON:GRG) hits UK£2.5b market cap, insiders may be dismayed about not purchasing higher quantities
Insiders who bought Greggs plc (LON:GRG) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£99m as a result of the stock's 4.1% gain over the same period. In other words, the original UK£290k purchase is now worth UK£298k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Greggs
The Last 12 Months Of Insider Transactions At Greggs
In the last twelve months, the biggest single purchase by an insider was when insider Roger Whiteside bought UK£189k worth of shares at a price of UK£24.21 per share. That means that an insider was happy to buy shares at around the current price of UK£24.86. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 11.99k shares worth UK£290k. But they sold 4.06k shares for UK£88k. In total, Greggs insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Greggs is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Greggs Insiders Buying Or Selling?
There was only a small bit of insider buying, worth UK£266, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Greggs Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Greggs insiders own 0.1% of the company, worth about UK£3.1m. We prefer to see high levels of insider ownership.
So What Do The Greggs Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Greggs stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Greggs.
Of course Greggs 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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