Yahoo Finance Darrell Thomas of British American Tobacco p.l.c. (LON:BATS) Just Spent UK£66k On Shares
Whilst it may not be a huge deal, we thought it was good to see that Darrell Thomas, who is a company insider, recently bought UK£66k worth of stock, for UK£32.89 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 43%.
Check out our latest analysis for British American Tobacco
The Last 12 Months Of Insider Transactions At British American Tobacco
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Ming Kwan bought UK£266k worth of shares at a price of UK£33.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£32.94). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid UK£429k for 13.00k shares. But insiders sold 5.06k shares worth UK£177k. In total, British American Tobacco insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. British American Tobacco insiders own about UK£6.4b worth of shares (which is 8.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At British American Tobacco Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about British American Tobacco. Looks promising! 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. In terms of investment risks, we've identified 2 warning signs with British American Tobacco and understanding them should be part of your investment process.
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.
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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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