Yahoo Finance Have Insiders Been Buying Bovis Homes Group PLC (LON:BVS) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Bovis Homes Group PLC (LON:BVS).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Bovis Homes Group
Bovis Homes Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Vice Chairman of the Board & CEO Gerald Fitzgerald for UK£139k worth of shares, at about UK£8.92 per share. That means that an insider was happy to buy shares at around the current price of UK£9.97. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Bovis Homes Group share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 15640 shares worth UK£140k. In the last twelve months Bovis Homes Group insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Bovis Homes Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Bovis Homes Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Bovis Homes Group insiders own 0.4% of the company, worth about UK£5.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Bovis Homes Group Insiders?
The fact that there have been no Bovis Homes Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Bovis Homes Group insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Bovis Homes Group.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
