Trade Alert: The Chairman of the Board & CEO Of Ebro Foods, S.A. (BME:EBRO), Antonio Hernández Callejas, Has Just Spent €600k Buying Shares
Ebro Foods, S.A. (BME:EBRO) shareholders (or potential shareholders) will be happy to see that the Chairman of the Board & CEO, Antonio Hernández Callejas, recently bought a whopping €600k worth of stock, at a price of €18.98. Not only is that a big swing, but it increased their holding size by 18%, which is definitely great to see.
View our latest analysis for Ebro Foods
Ebro Foods Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Proprietary Director José Ignacio Comenge Sánchez-Real for €1.9m worth of shares, at about €19.47 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being €18.84). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Ebro Foods insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership of Ebro Foods
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ebro Foods insiders own about €47m worth of shares. That equates to 1.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Ebro Foods Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Ebro Foods shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Ebro Foods.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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