Yahoo Finance A UK£6.1m Market Cap Boost Pleasing ToBelluscura Insiders
Insiders who bought Belluscura plc (LON:BELL) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£6.1m as a result of the stock's 12% gain over the same period. In other words, the original US$490k purchase is now worth US$813k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Belluscura
Belluscura Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director David Poutney for UK£450k worth of shares, at about UK£0.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.41. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid UK£490k for 1.96m shares. On the other hand they divested 235.33k shares, for UK£106k. Overall, Belluscura insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.
Belluscura Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Belluscura. Overall, three insiders shelled out UK£490k for shares in the company -- and none sold. This makes one think the business has some good points.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 18% of Belluscura shares, worth about UK£9.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Belluscura Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Belluscura insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Belluscura. Case in point: We've spotted 5 warning signs for Belluscura you should be aware of, and 2 of them make us uncomfortable.
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.
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.
