Yahoo Finance Independent Non-Executive Director Ming Kwan Just Bought 97% More Shares In British American Tobacco p.l.c. (LON:BATS)
Investors who take an interest in British American Tobacco p.l.c. (LON:BATS) should definitely note that the Independent Non-Executive Director, Ming Kwan, recently paid UK£33.22 per share to buy UK£266k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 97%, potentially signalling some real optimism.
See our latest analysis for British American Tobacco
British American Tobacco Insider Transactions Over The Last Year
In fact, the recent purchase by Ming Kwan was the biggest purchase of British American Tobacco shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than UK£33.07 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 10.52k shares for UK£334k. But insiders sold 57.00 shares worth UK£1.8k. In total, British American Tobacco 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Does British American Tobacco 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. British American Tobacco insiders own about UK£6.2b worth of shares (which is 8.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The British American Tobacco Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about British American Tobacco. One for the watchlist, at least! 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 - British American Tobacco has 2 warning signs we think you should be aware of.
But note: British American Tobacco 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.
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.
