Yahoo Finance Insider Buying: The British American Tobacco p.l.c. (LON:BATS) Independent Non-Executive Director Just Bought 102% More Shares
Even if it's not a huge purchase, we think it was good to see that Karen Guerra, the Independent Non-Executive Director of British American Tobacco p.l.c. (LON:BATS) recently shelled out UK£68k to buy stock, at UK£27.05 per share. Even though that isn't a massive buy, it did increase their holding by 102%, which is arguably a good sign.
View our latest analysis for British American Tobacco
British American Tobacco Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Luc Jobin for UK£1.2m worth of shares, at about UK£25.98 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£26.50. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
While British American Tobacco insiders bought shares during the last year, they didn't sell. 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!
British American Tobacco 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. British American Tobacco insiders own 0.2% of the company, currently worth about UK£100m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At British American Tobacco Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest British American Tobacco 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. For example, British American Tobacco has 2 warning signs (and 1 which can't be ignored) we think you should know about.
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.
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. 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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