Bega Cheese Insiders Added AU$15m Of Stock To Their Holdings
Quite a few insiders have dramatically grown their holdings in Bega Cheese Limited (ASX:BGA) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Bega Cheese
The Last 12 Months Of Insider Transactions At Bega Cheese
Over the last year, we can see that the biggest insider purchase was by insider John Forrest for AU$15m worth of shares, at about AU$3.27 per share. That means that an insider was happy to buy shares at around the current price of AU$3.53. 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. The good news for Bega Cheese share holders is that insiders were buying at near the current price.
In the last twelve months Bega Cheese insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
insider-trading-volume
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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Bega Cheese insiders own about AU$147m worth of shares (which is 14% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned…
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