Yahoo Finance Should You Be Worried About Insider Transactions At Britvic plc (LON:BVIC)?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Britvic plc (LON:BVIC), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
See our latest analysis for Britvic
The Last 12 Months Of Insider Transactions At Britvic
Doug Frost made the biggest insider sale in the last 12 months. That single transaction was for UK£98k worth of shares at a price of UK£8.16 each. While their view may have changed since they sold, this isn’t a particularly bullish sign. As a general rule we consider it to be discouraging when insiders are selling below the current price. It is worth noting that this sale was only 5.5% of Doug Frost’s holding. However, we note that Doug Frost left Britvic during the year and was replaced with Zareena Brown. As a result, it is likely that his transactions do not imply any special insights into the company.
In the last twelve months insiders purchased 6.03k shares for UK£43k. But they sold 12.00k for UK£98k. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Britvic insiders own 0.2% of the company, currently worth about UK£5.3m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Britvic Insider Transactions Indicate?
The fact that there have been no Britvic insider transactions recently certainly doesn’t bother us. Our analysis of Britvic insider transactions leaves us unenthusiastic. And we’re not picking up on high enough insider ownership to give us any comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Britvic.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
