Yahoo Finance Independent Director Vinita Bali Just Bought 25% More Shares In Bunge Limited (NYSE:BG)
Whilst it may not be a huge deal, we thought it was good to see that the Bunge Limited (NYSE:BG) Independent Director, Vinita Bali, recently bought US$55k worth of stock, for US$46.17 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 25%.
See our latest analysis for Bunge
Bunge Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Gregory Heckman bought US$4.8m worth of shares at a price of US$39.85 per share. That means that an insider was happy to buy shares at around the current price of US$46.77. 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. Happily, the Bunge insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 243.77k shares worth US$11m. But insiders sold 1.79k shares worth US$98k. In the last twelve months there was more buying than selling by Bunge insiders. They paid about US$44.16 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bunge is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. Insiders own 0.8% of Bunge shares, worth about US$53m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Bunge Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Bunge insiders are well aligned, and that they may think the share price is too low. 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. Our analysis shows 3 warning signs for Bunge (1 is potentially serious!) and we strongly recommend you look at these before investing.
But note: Bunge 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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