Independent Non-Executive Chairman John Mullen Just Bought 64% More Shares In Brambles Limited (ASX:BXB)
Investors who take an interest in Brambles Limited (ASX:BXB) should definitely note that the Independent Non-Executive Chairman, John Mullen, recently paid AU$11.04 per share to buy AU$221k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 64%, potentially signalling some real optimism.
View our latest analysis for Brambles
The Last 12 Months Of Insider Transactions At Brambles
In fact, the recent purchase by John Mullen was the biggest purchase of Brambles shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$11.38 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Brambles insiders decided to buy shares at close to current prices.
While Brambles insiders bought shares during the last year, they didn't sell. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Brambles Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$3.8m worth of Brambles stock, about 0.02% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Brambles Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Brambles insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 3 warning signs for Brambles that deserve your attention before buying any shares.
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.
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.
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