Bullish Breville Group Limited (ASX:BRG) investors are yet to receive a pay off on their AU$884k bet

Insiders who acquired AU$884k worth of Breville Group Limited’s (ASX:BRG) stock at an average price of AU$23.11 in the past 12 months may be dismayed by the recent 4.6% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$692k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Breville Group

The Last 12 Months Of Insider Transactions At Breville Group

Over the last year, we can see that the biggest insider purchase was by Deputy Chairperson & Lead Independent Director Lawrence Myers for AU$774k worth of shares, at about AU$23.47 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being AU$18.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid AU$884k for 38.24k shares. But they sold 238.00 shares for AU$5.3k. Overall, Breville Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume

Breville Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Breville Group Insiders Bought Stock Recently

At Breville Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, Non-Executive Director Sally Herman bought AU$105k worth of shares in that time. But we did see Independent Non-Executive Director Dean Howell sell shares worth AU$5.3k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 1.2% of Breville Group shares, worth about AU$31m. 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 Breville Group Tell Us?

It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Breville Group insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Breville Group is showing 2 warning signs in our investment analysis, and 1 of those is concerning…

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Leave a Reply

Your email address will not be published. Required fields are marked *