A number of insiders bought Brambles Limited (ASX:BXB) stock last year, which is great news for shareholders

·3 min read

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Brambles Limited (ASX:BXB), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Brambles

Brambles Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman John Mullen bought AU$348k worth of shares at a price of AU$11.08 per share. That means that an insider was happy to buy shares at above the current price of AU$10.43. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Brambles insiders may have bought shares in the last year, but they didn't sell any. 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!

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insider-trading-volume

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.

Are Brambles Insiders Buying Or Selling?

There was only a small bit of insider buying, worth AU$2.7k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Brambles Boast High 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. Our data indicates that Brambles insiders own about AU$8.0m worth of shares (which is 0.05% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Brambles Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Brambles insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brambles. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Brambles.

Of course Brambles may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.

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