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Insiders who bought Greggs plc (LON:GRG) stock in the last 12 months recover some losses, but still down UK£31k

·3-min read

Some of the losses seen by insiders who purchased UK£290k worth of Greggs plc (LON:GRG) shares over the past year were recovered after the stock increased by 11% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at UK£31k since the time of purchase.

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 Greggs

The Last 12 Months Of Insider Transactions At Greggs

In the last twelve months, the biggest single purchase by an insider was when Executive Officer Roger Whiteside bought UK£189k worth of shares at a price of UK£24.21 per share. That means that an insider was happy to buy shares at above the current price of UK£21.62. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

Happily, we note that in the last year insiders paid UK£290k for 11.97k shares. On the other hand they divested 4.06k shares, for UK£88k. Overall, Greggs 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
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.

Greggs Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Greggs. In that time, Finance Director & Executive Director Richard Hutton dumped UK£88k worth of shares. Meanwhile Executive Officer Roger Whiteside bought UK£340 worth. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Greggs insiders own about UK£4.7m worth of shares (which is 0.2% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Greggs Insider Transactions Indicate?

The stark truth for Greggs is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. Still, insiders don't own a great deal of the stock. So we can't be sure that insiders are optimistic. 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. Every company has risks, and we've spotted 2 warning signs for Greggs 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.

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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