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Whilst it may not be a huge deal, we thought it was good to see that the British American Tobacco p.l.c. (LON:BATS) Director of Operations & Member of Management Board, Alan Davy, recently bought UK£2.5k worth of stock, for UK£31.21 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
British American Tobacco Insider Transactions Over The Last Year
Notably, that recent purchase by Alan Davy is the biggest insider purchase of British American Tobacco shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£29.03. 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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Alan Davy was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
British American Tobacco is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of British American Tobacco
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. British American Tobacco insiders own 0.2% of the company, currently worth about UK£116m 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?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like British American Tobacco insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of British American Tobacco.
But note: British American Tobacco 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. 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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