Yahoo Finance One Fevertree Drinks Plc (LON:FEVR) insider upped their stake by 9.0% in the previous year
Looking at Fevertree Drinks Plc's (LON:FEVR ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Fevertree Drinks
Fevertree Drinks Insider Transactions Over The Last Year
The Independent Non-Executive Director Kevin Havelock made the biggest insider purchase in the last 12 months. That single transaction was for UK£189k worth of shares at a price of UK£24.82 each. That means that an insider was happy to buy shares at around the current price of UK£27.10. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Fevertree Drinks share holders is that an insider was buying at near the current price. Kevin Havelock was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of Fevertree Drinks
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. It's great to see that Fevertree Drinks insiders own 10% of the company, worth about UK£321m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Fevertree Drinks Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fevertree Drinks. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fevertree Drinks. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Fevertree Drinks.
But note: Fevertree Drinks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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