Yahoo Finance Insiders who bought Bigblu Broadband plc (LON:BBB) stock in the last 12 months recover some losses, but still down UK£22k
Insiders who bought UK£74k worth of Bigblu Broadband plc (LON:BBB) stock in the last year have seen some of their losses recouped as the stock gained 22% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled UK£22k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Bigblu Broadband
The Last 12 Months Of Insider Transactions At Bigblu Broadband
The CEO & Executive Director Andrew Walwyn made the biggest insider purchase in the last 12 months. That single transaction was for UK£55k worth of shares at a price of UK£1.24 each. That means that an insider was happy to buy shares at above the current price of UK£0.75. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.
Bigblu Broadband insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£1.06. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bigblu Broadband is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Bigblu Broadband Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 16% of Bigblu Broadband shares, worth about UK£7.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Bigblu Broadband Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Bigblu Broadband insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Bigblu Broadband you should be aware of.
But note: Bigblu Broadband 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.
